ETFs: When Bitcoin Gets Dumped Like It’s 2009 🙃

Spot Bitcoin ETFs? Still in the red, folks! That’s right, for the fourth week straight, we’ve seen more outflows than a Kardashian family reunion. Macroeconomic factors? They’re still playing the role of the party pooper at our crypto bash.

Per SoSoValue, the 12 spot Bitcoin ETFs? They’re feeling the burn. From March 3-5, nearly $800 million said “see ya later” to these funds. And let’s not forget that record-breaking week where $2.61 billion was redeemed. Four weeks of negative flows, totaling over $4.5 billion in outflows. It’s like watching a slow-motion train wreck, but with less drama…wait, who am I kidding?

Last week was a rollercoaster ride of negativity, starting with $74.19 million on Monday, then escalating to $409 million on Friday. ARK and 21Shares’ ARKB led the charge with $160.03 million out, followed by Fidelity’s FBTC with $154.89 million. But fear not, there’s always a silver lining. VanEck’s HODL recorded a tiny inflow of $619.55K. It’s like finding a penny on the ground…but in crypto terms.

Ethereum ETFs didn’t escape the bloodbath either. Two weeks of negative flows, with $455 million exiting the funds. It’s the crypto version of “The Great Escape,” minus the happy ending.

The White House Crypto Summit was supposed to be the superhero that saves the day, but Bitcoin ETFs kept their downward trend. Blame it on macroeconomic concerns, Trump’s trade tariffs, and overall economic uncertainty. It’s like a bad breakup, but with more tweets.

Hedge funds might be playing a game of “arbitrage roulette” between Bitcoin spot ETFs and CME futures, leaving the rest of us holding the bag. As these trades unwind, liquidity is drying up faster than a fish out of water, leading to increased selling pressure and more outflows. It’s like watching a horror movie unfold, but with numbers.

Trump’s announcement of the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile? Not the bullish event everyone hoped for. Bitcoin’s price dropped from $90,000 to $85,000 post-executive order. It’s the crypto version of “Expectations vs. Reality.”

Kadan Stadelmann, CTO of Komodo, sums it up perfectly: “buy the rumor, sell the news.” Bitcoin ETFs are experiencing major outflows despite the Strategic Bitcoin Reserve, thanks to this timeless market mantra. Speculation started in July 2024, but by the time the announcement was made, the market had already moved on. It’s like being ghosted by your own investments.

In these situations, Stadelmann notes that “less informed, connected, and monied” individuals often buy the news and lose money. Add in the market’s current woes—trade tariffs, inflation, a slowing real estate market, weak consumer spending, and declining savings—and you’ve got yourself a recipe for disaster. Or, as we like to call it, “Crypto Chaos à la Mode.”

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2025-03-10 10:31