Bitcoin ETFs Bleed $938M!

Bitcoin ETFs saw a net outflow of $937.9 million on Feb. 25.

Author

Danielle du Toit
February 26, 2025

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Here's what we've got for you today:

  • US Spot Bitcoin ETFs See Largest-Ever Daily Outflow of $938M

  • Bybit Returns to India After Compliance Hurdle and Major Hack

  • Bitcoin Reserves Will Fuel Speculation Not Stability Says ECB Adviser

  • US Senator Introduces Bill to Stop Crypto ATM Fraud

So far, Bitcoin ETFs in the US have seen more than $2.4 billion in net outflows over February. 

  • Bitcoin ETFs saw a net outflow of $937.9 million on Feb. 25. This was the sixth straight day of withdrawals during the broader market downturn.

  • Fidelity’s FBTC led with a record $344.7 million in outflows, followed by BlackRock’s IBIT ($164.4 million), Bitwise’s BITB ($88.3 million), and Grayscale’s two funds ($151.9 million combined).

  • Analysts like Arthur Hayes and Markus Thielen suggest that most Bitcoin ETF investors are hedge funds pursuing arbitrage yields rather than long-term BTC holdings.

The cryptocurrency exchange Bybit has officially registered with Indian government authorities.

  • Bybit registered with Indian authorities after being fined $1.06 million by India’s FIU for violating anti-money laundering regulations.

  • The exchange suspended operations weeks before the fine due to compliance concerns, and its website was later blocked under the Information Technology Act for continuing operations without the proper registration.

  • Just days before restoring services in India, Bybit suffered a $1.4 billion hack by the North Korean-affiliated Lazarus Group, which was the largest crypto theft in history.

Jürgen Schaaf recently criticized Bitcoin’s economic utility, and argued that national Bitcoin reserves are too risky and lack fundamental necessity.

  • ECB adviser Jürgen Schaaf argues that national Bitcoin reserves are risky and lack economic necessity compared to more traditional reserves like oil and gas.

  • Schaaf agreed with ECB President Christine Lagarde. She recently pointed out Bitcoin’s extreme volatility, illicit use, and susceptibility to manipulation, which makes it unsuitable for central banks.

  • He dismissed the idea of holding diversified crypto reserves as well, stating that digital assets lack fundamental economic utility and would only increase speculative risks.

🛑 US Senator Introduces Bill to Stop Crypto ATM Fraud

Illinois Senator Dick Durbin proposed legislation to reduce fraud at crypto ATMs in the United States.

  • Senator Durbin specifically mentioned a case where a fraudster tricked a victim into depositing $15,000 into a crypto ATM by falsely claiming there was a warrant for his arrest.

  • With over 30,000 crypto ATMs in the US, Durbin warned of an alarming rise in fraud, particularly targeting senior citizens.

  • The Crypto ATM Fraud Prevention Act aims to require consumer warnings, fraud prevention measures, loss limits, and better law enforcement tools to combat scams.

👀 QUICK NEWS

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