Recent changes in Bitcoin ETFs in the US market reveal a net outflow as Bitcoin fell below $95,000, driven by declining odds of Trump's administration approving a Bitcoin reserve.
Changes in Bitcoin ETFs
According to data from SoSoValue, 12 spot Bitcoin ETFs recorded a net outflow of $60.63 million on Friday, a reversal from the $66.19 million in net inflows recorded the previous trading day. The majority of outflows came from Bitwise’s BITB, which saw $112.65 million exit the fund, followed by Fidelity’s FBTC, which logged $16.42 million in outflows. BlackRock’s IBIT managed to offset part of these outflows, attracting $68.44 million from investors, while the remaining nine Bitcoin ETFs recorded no flows for the day. Despite the outflows, Bitcoin ETFs experienced a surge in trading activity, with daily volume rising to $2.83 billion on Feb. 18, up from $2.2 billion the previous day.
Factors Affecting Bitcoin Dynamics
A key factor for this decline appears to be Bitcoin's dip below $95,000, part of an ongoing downtrend since its all-time high of $109,200 a month ago. Simultaneously, confidence in Trump's administration establishing a Strategic Bitcoin Reserve in the US continues to wane. On Polymarket, a prediction market tracking this possibility, the probability of President Donald Trump launching an SBR within his first 100 days has dropped to 11%, a significant drop from its January peak of 40%. Despite the decline, discussions within the Trump administration are reportedly ongoing, according to David Sacks, a prominent venture capitalist.
Stability of Ethereum ETFs
In contrast to Bitcoin, the nine spot Ethereum ETFs maintained their positive streak, recording a modest $4.6 million in inflows on Feb. 18, entirely from Fidelity’s FETH, which logged inflows for the third consecutive day. The remaining ETH ETFs stayed neutral on the day.
Thus, current changes and dynamics in ETF funds reflect broader sentiments in the cryptocurrency market, where uncertainty about Bitcoin's future coexists with Ethereum's relative stability.
