US Bitcoin ETFs Suffer Epic $3.5b Exodus in February 🤑 BTC Plummets, Trump Saves the Day?!

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Once upon a time in the land of the free, the spot Bitcoin exchange-traded funds (ETFs) in the United States decided to have a grand exodus in February. It was the biggest monthly net outflow since they first graced the financial world with their presence. 🚀

According to the wise sages at SoSoValue, the 12 spot Bitcoin ETFs saw more than $3.5 billion in net outflows during the month. This was the largest outflow ever recorded in a single month, surpassing even the wildest dreams of the most pessimistic investors. Just a month earlier, these ETFs had been basking in the glory of $4.8 billion in inflows. What a turn of events! 😱

February started on a high note, with the ETFs enjoying $203.54 million in net inflows during the first week, extending a five-week inflow streak. But then, like a dark cloud over a sunny day, sentiment took a drastic turn. The following two weeks saw outflows exceeding $500 million each, as if the ETFs were being drained by a financial vampire. 🧛‍♂️

The final week of February, from the 24th to the 28th, was the most dramatic. The ETFs experienced a staggering $2.61 billion in net outflows, marking their highest weekly outflows since their launch. February 25th was particularly memorable, with $1.14 billion in net outflows—the highest single-day outflow ever recorded. It was a day that would be etched in the annals of Bitcoin history. 📜

But wait, there’s more! On February 28th, the ETFs shifted back to net inflows, with $94.34 million entering the funds. The majority of these inflows came from ARK 21Shares’ ARKB, which saw $193.7 million, and Fidelity’s FBTC, which attracted $176.03 million. However, these gains were partially offset by $244.56 million in outflows from BlackRock’s IBIT. It was a classic case of one step forward, two steps back. 🕺

The massive net outflows in February coincided with Bitcoin tumbling approximately 28% from its record high as of March 2. This marked Bitcoin’s largest monthly drop since June 2022, wiping out nearly $1 trillion from the crypto market. Fidelity’s FBTC led the outflows, losing over $1.4 billion. It was a financial rollercoaster ride that left many investors feeling a bit queasy. 🤢

Investor confidence took a hit due to former President Donald Trump’s aggressive trade policies, which raised concerns over economic instability. Persistent inflation also added to the pressure, prompting investors to move away from riskier assets. The situation worsened after hackers stole nearly $1.4 billion from Bybit—the largest crypto theft in history—and traders suffered significant losses on speculative memecoins. It was a perfect storm of financial chaos. 🌪️

Despite Bitcoin’s bearish performance throughout February, marking its worst monthly decline since June 2022 with a 17.2% drop, the trend reversed yesterday after Trump announced the creation of a U.S. Strategic Crypto Reserve. This reserve will include a basket of cryptocurrencies, including Bitcoin and Ethereum. As of press time, Bitcoin (BTC) had surged 8.1% in the past 24 hours, trading at $92,980, after dipping below $80,000 on Friday—a three-month low. Ethereum (ETH), which has been among the hardest-hit cryptocurrencies this year, gained 9.5%. It was a dramatic turn of events that left many scratching their heads. 🤔

Commenting on the potential impact of the reserve, Federico Brokate, head of U.S. business at 21Shares, told crypto.news:

“The launch of a U.S. Crypto Strategic Reserve marks a pivotal moment for digital assets, reflecting a major step in the government’s engagement with the crypto industry.”

He also emphasized that including multiple blockchain protocols highlights “the diverse utility of blockchain networks, from tokenization to global payments.” According to Brokate, this move positions the U.S. to lead the “next phase of adoption and innovation” in the crypto space. It was a statement that left many crypto enthusiasts feeling a glimmer of hope in the midst of the financial turmoil. 🌟

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2025-03-03 09:58