In a plot twist that would make even the most seasoned soap opera writer raise an eyebrow, U.S. spot Bitcoin exchange-traded funds (ETFs) have decided to take a little vacation, resulting in a staggering $1.6 billion in net outflows during the first half of March. Apparently, the allure of trade tensions and market uncertainty was just too much to resist! 🎭
According to the ever-watchful data wizards at SoSoValue, the twelve brave Bitcoin (BTC) ETFs faced weekly outflows of $799.39 million and $870.39 million in the first two weeks of March. That’s a total of $1.67 billion, which is enough to make even a dragon hoard its gold in disbelief! 🐉
These outflows have now become a regular feature, marking the fifth consecutive week of net withdrawals. In total, over $5.4 billion has vanished into the ether, leaving behind a trail of confused investors. Just a few months ago, these ETFs were basking in the glow of over $5 billion in investments after a promising start to 2025. Talk about a plot twist! 📉
According to the crystal ball gazers at Farside, the majority of the Bitcoin ETF withdrawals came from Fidelity’s FBTC, which saw a whopping $508.4 million in net outflows. BlackRock’s IBIT wasn’t far behind, with investors pulling out $467.7 million. It’s almost as if they were playing a game of “who can leave the party first.” 🎉
Other notable exits included Grayscale’s GBTC and ARK 21Shares’ ARKB, which lost around $289 million and $231.8 million, respectively. Meanwhile, a few other ETFs, like Invesco Galaxy’s BTCO and Franklin Templeton’s EZBC, saw moderate outflows ranging from $51 million to $108 million. It’s like watching a slow-motion train wreck, but with more spreadsheets! 🚂
On the other hand, Valkyrie’s BRRR, Grayscale’s mini Bitcoin Trust, and VanEck’s HODL experienced only minor withdrawals, with outflows staying under $15 million. They must have been the cool kids at the party, sipping their drinks while everyone else rushed for the exit! 🍹
The steady outflows from Bitcoin ETFs seem to be linked to Bitcoin’s recent price dip. Over the past month, BTC has dropped 14%, briefly hitting lows of $77,000. Institutional investors have been more cautious during this period, leading to a 21.7% drop in total net assets for Bitcoin spot ETFs, which now stand at a mere $93.25 billion. It’s like watching a once-mighty castle crumble into ruins! 🏰
Analysts, those ever-optimistic seers, say Bitcoin’s recent drop is due to broader economic worries, especially concerns over Trump’s trade tariffs and the overall uncertainty in the market. Who knew that tariffs could be so dramatic? 🎭
With investors playing it safe, traditional assets like gold are gaining traction. Gold ETFs, in particular, are seeing more interest and have now overtaken Bitcoin ETFs in total assets under management. It’s like watching the tortoise slowly but surely win the race! 🐢
Experts weigh in
Commenting on the recent bearish trend in Bitcoin ETFs, Fakhul Miah, director of GoMining Institutional, told crypto.news that Bitcoin’s recent drop below $80,000 for the second time this year has reinforced its status as a “high-risk asset.” Well, that’s one way to put it! 😅
“The current environment presents additional complexities. Elevated consumer price index (CPI) readings have maintained the Federal Reserve’s hawkish stance, keeping borrowing costs high and reducing liquidity in the market. This dynamic continues to weigh on speculative assets like Bitcoin, which are highly sensitive to shifts in monetary policy.” Sounds like a recipe for disaster! 🍽️
The expert also pointed out that trade tensions in North America and overall economic uncertainty are shaking investor confidence, making further sell-offs more likely. It’s like a game of Jenga, but with much higher stakes! 🎲
Meanwhile, Georgii Verbitskii, founder of TYMIO, noted that Bitcoin ETF outflows have been slowing down, suggesting that “[last] Friday’s outflows were relatively minor compared to the heavier selling pressure in late February and early March.” This implies that the recent sell-off was more of a reaction to past volatility rather than the start of a long-term exit. So, there’s still
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2025-03-17 14:28