The U.S. spot Bitcoin ETFs have recorded three consecutive days of net outflows totaling nearly $500 million leading up to February 20, 2025. According to data from SoSoValue, the downward trend began with $61.4 million in withdrawals on February 18, followed by $71.07 million on February 19. However, the most significant single-day drop came on February 20, when net outflows surged to $364.93 million.
Major ETF withdrawals
Among the biggest losses, BlackRock’s IBIT experienced the highest single-day withdrawal at $112.05 million. Other large outflows included:
- ARK Invest’s ARKB: $98.3 million
- Fidelity’s FBTC: $89.24 million
- Grayscale’s GBTC: $33.5 million (continuing its outflow trend since its conversion from a trust)
Despite the widespread outflows, some ETFs managed to attract investments. Bitwise’s BITB saw an inflow of $24.1 million, while VanEck’s HODL posted a slight gain of $4.18 million.
Institutional demand remains strong
While the ETF outflows have raised concerns about shifting investor sentiment, institutional interest in Bitcoin remains solid. Recently, Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, invested $436.9 million in BlackRock’s IBIT, reinforcing long-term confidence in Bitcoin ETFs. Additionally, Barclays disclosed a $131 million investment in IBIT for Q4 2024, as per its February 13 SEC filing.
Market uncertainty and future catalysts
Crypto analyst Miles Deutscher pointed out that initial demand for Bitcoin ETFs, fueled by their approval and the election of Donald Trump, has started to fade. Investors are now waiting for the next major catalyst to drive Bitcoin prices higher.
One potential driver, the Strategic Bitcoin Reserve, has faced delays, leaving markets uncertain. Many investors expected its introduction soon after Trump took office, potentially boosting institutional inflows.
Despite ETF outflows, Bitcoin’s price has remained stable at $98,000, up 1% in the past 24 hours. Analysts emphasize that sustained institutional demand will be key to maintaining Bitcoin’s momentum in the coming months.
SEC set to dismiss Coinbase enforcement case, awaiting final approval
SEC plans to drop Coinbase case awaiting approval. The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Coinbase, marking a major policy reversal and signaling a shift toward friendlier crypto regulations under the new administration. The lawsuit, originally filed in 2023, accused Coinbase of operating as an unregistered securities exchange and failing to properly register its staking services.
🚨NEWS: 🇺🇸SEC to drop enforcement case against @coinbase (pending commissioner approval). pic.twitter.com/EcafkROOBZ
— SolanaFloor (@SolanaFloor) February 21, 2025
This decision follows President Donald Trump’s pro-crypto stance and the nomination of Paul Atkins as the new SEC Chair. Atkins, known for his crypto-friendly approach, represents a clear departure from former SEC Chair Gary Gensler’s aggressive enforcement strategy. Acting SEC Chair Mark Uyeda has already started scaling back the agency’s crypto enforcement unit, creating the Cyber and Emerging Technologies Unit (CETU) to focus specifically on crypto fraud prevention rather than broad regulatory crackdowns.
Turning point for Crypto regulation
Coinbase CEO Brian Armstrong hailed the decision as a “huge day” for the industry, emphasizing that this move signals a more transparent and favorable regulatory environment for digital assets in the U.S. Paul Grewal, Coinbase’s Chief Legal Officer, called the agreement a “complete surrender” by the SEC, as the case will be dismissed with prejudice—preventing similar charges from being refiled.
Great news!
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we’re told to expect next week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
“Case dismissed.” Two words that every defendant in every case yearns to hear. Today we can announce upon full Commission approval @SECGov is dropping our case. There will be no settlement or compromise– a wrong will simply be made right. 1/4
— paulgrewal.eth (@iampaulgrewal) February 21, 2025
Political & market reactions
The decision carries significant political and financial implications. The crypto industry played a major role in Trump’s campaign, with Coinbase-backed Fairshake PAC contributing over $130 million to pro-blockchain candidates.
Markets responded positively to the news, with Coinbase shares surging 4% in premarket trading and Bitcoin nearing the $100,000 mark. If formally approved by SEC commissioners, this will be one of the most significant regulatory reversals in crypto history, setting the stage for a new era of cooperation between digital asset firms and U.S. regulators.
Cathie Wood Predicts Startup M&A Boom and $1M Bitcoin in Trump’s Era
ARK Invest founder Cathie Wood anticipates a significant rise in mergers and acquisitions (M&As) under Donald Trump’s administration, citing expected deregulation and reduced FTC barriers. In a recent Bloomberg interview, Wood stated that the Federal Trade Commission (FTC) would likely roll back restrictions that previously hindered private-company buyouts, leading to greater liquidity and market activity.
M&A growth driven by deregulation
Wood emphasized that Trump’s administration will create a business-friendly environment, particularly benefiting venture-backed startups. She believes FTC-imposed barriers will be lifted, allowing buyers to reenter the market without previous regulatory constraints.
“M&A has been prevented by the FTC. That is going to change,” Wood said on Bloomberg Television. “Deregulation [is] critically important.”
She expects a resurgence in liquidity events, facilitating transparent price discovery for new companies, which could boost innovation and investment in the tech sector.
Bitcoin’s path to $1 million
Wood also reaffirmed her bullish stance on Bitcoin, predicting it could exceed $1 million by 2030. She attributes this to BTC’s fixed supply, which makes it scarcer than gold.
“When gold prices rise, production increases, adding to its supply,” Wood explained. “That can’t happen with Bitcoin.”
Crypto market still in early stages
Wood also noted that Federal Reserve Chair Jerome Powell has compared Bitcoin to digital gold, aligning with her view that crypto is in its early stages.
With Bitcoin’s market cap at $2 trillion compared to gold’s $15 trillion, Wood sees significant growth potential, especially as institutional adoption continues to expand.
