Bitcoin ETFs Post $105M Outflow As Grayscale and Ethereum Signal Rotation

BlackRock‘s IBIT took the biggest hit, losing $120 million that day. Fidelity’s FBTC squeaked out a tiny $5.89 million gain, but that barely registered against all the red ink elsewhere.

Add it all up, and Bitcoin ETFs dropped $105 million combined. This keeps going too. Since January 2026, these funds have bled somewhere between $4 billion and $6 billion total. Multiple weeks of people pulling money out create serious downward pressure.

Bitcoin ETFs | Source: SoSoValue

Heres what matters, though. Grayscale Mini making money while everyone else lost shows something different from widespread selling.

If people truly wanted out of Bitcoin completely, then every single Bitcoin fund would be leaking. Thats not what happened. Some folks are just picking cheaper ways to own Bitcoin rather than paying high fees. They still want Bitcoin. They just want it for less money. Moving between products is very different from abandoning the entire asset.

Ethereum Brings Money Into Crypto ETFs, Creating a Split

Ethereum ETFs gained $48.6 million on Feb. 17. Bitcoin ETFs lost $105 million. Same day. Opposite directions. Money left Bitcoin products and went into Ethereum products right in front of everyone. Traders see this kind of split and call it divergence between related things.

Heres a detail that changes everything. Not one other crypto ETF posted losses that day. Bitcoin was the only one bleeding.

If crypto as a whole were collapsing, then money would be pouring out of everything crypto-related. Instead, it poured specifically out of Bitcoin, into Ethereum, and stayed put everywhere else.

ETF ETFs |XRP ETFS Monthly View | Source: SoSoValue

Some could be getting ready for what people call altcoin season, when alternative coins do better than Bitcoin. What matters is that the money stayed inside crypto. It just moved around to different pieces.

Long Selling Bitcoin ETFs Periods Often Mark the Bottom

Bitcoin ETF outflows hitting $4 billion to $6 billion since January sounds awful on the surface. But history tells an interesting story here. Extended selling that lasts four weeks or more has marked local bottoms several times before, rather than signaling deeper crashes ahead.

Late 2024 and early 2025 both saw similar multi-week outflow stretches. Prices recovered after those periods ended. When fear runs hottest, and everyone sells, that often marks the moment smart money starts buying quietly.

Look at what happened on Feb. 17 as a whole picture. Grayscale Mini brought cash in. Ethereum gained significantly. Other crypto ETFs stayed stable with no outflows. This does not look like the start of crypto falling apart.

It looks more like money circulating among different products and assets in the crypto world. People are being picky about what they own. Moving from expensive products to cheap ones. Shifting from Bitcoin ETFs toward Ethereum. But abandoning digital assets completely？ The numbers dont support that story at all.