Bitcoin ETFs Experience Significant Outflows
On Feb. 3, spot Bitcoin ETFs witnessed a net outflow of around $235 million, a sharp contrast to the four consecutive days of net inflows totaling $1 billion. This shift came as Bitcoin dropped to a three-week low, briefly hitting $92,000 over the weekend.
Fluctuations in ETF Flows
The previous week saw consistent net inflows averaging $250 million per day, making the massive outflows on Feb. 3 even more significant. This deviation from the trend over the past month highlights the ETF market’s sensitivity to external political and economic factors.
Major Outflows and Redemptions
- Fidelity’s FBTC experienced the largest outflows, with $177.6 million in net redemptions.
- Grayscale’s GBTC also saw notable outflows, shedding $8.6 million.
- Bitwise’s BITB lost $5.5 million, while ARK’s ARKB recorded a $50.7 million outflow.
- Other ETFs like BlackRock’s IBIT, Invesco’s BTCO, Franklin’s EZBC, Valkyrie’s BRRR, VanEck’s HODL, and WisdomTree’s BTCW reported no inflows or outflows.
- Interestingly, Grayscale’s BTC attracted a small positive inflow of $8 million.
Impact of Political Factors
President Donald Trump’s announcement of new tariffs on imports from Canada, Mexico, and China triggered the volatility. The uncertainty surrounding these tariffs prompted a shift away from risk assets, including Bitcoin, as investors reevaluated their portfolios in light of potential economic implications.
The imposition of tariffs raises concerns about increased production costs, disrupted supply chains, and potential retaliatory measures, contributing to broader economic uncertainty and prompting investors to reduce exposure to volatile assets like Bitcoin.
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