Bitcoin ETFs Experience Historic Withdrawals Amid Market Turmoil
Bitcoin ETFs have experienced a staggering $938 million withdrawal in one day, with Fidelity and BlackRock facing the largest losses. Despite Bitcoin dipping below $90,000, it has shown signs of recovery. Binance CEO Richard Teng views the current market downturn as a tactical phase rather than a permanent reversal, urging optimism despite macroeconomic pressures.
Recent data from the analytics firm Spononchain has revealed that Bitcoin exchange-traded funds (ETFs) experienced a substantial withdrawal, amounting to approximately $938 million, marking the largest single-day outflow since their inception in 2024. The overwhelming portion of this outflow came from Fidelity, which saw a withdrawal of $344.7 million, followed by BlackRock’s IBIT with $164.4 million. Both Bitwise and Grayscale mini ETFs reported similar losses of around $88 million each.
This significant outflow occurs while Bitcoin’s price has dipped below the $90,000 threshold for the first time in four months, despite a slight recovery to approximately $89,020 following a 2.45% increase. The drop in Bitcoin’s value is likely influenced by imminent trade tariffs set by the U.S. President on Canada and Mexico and uncertainties regarding the Federal Reserve’s monetary policy. Bitcoin ETFs officially began trading in January last year after the SEC approved their filings, following several months of delays.
In response to the market fluctuation, Binance CEO Richard Teng shared insights on his X account. He described the current market situation as a “tactical retreat, not a reversal,” emphasizing the historical resilience of the cryptocurrency market. He noted that while a March interest rate cut appears less feasible, it is crucial for investors to maintain a positive outlook amidst macroeconomic changes. Teng assured that the fundamental indicators for cryptocurrencies are improving, characterizing the situation as a necessary recalibration for the market.
In summary, Bitcoin ETFs are facing significant withdrawal challenges, with a total loss of approximately $938 million in a single day. This reflects broader uncertainties in the cryptocurrency market, exacerbated by macroeconomic factors and upcoming trade tariffs. It is essential for investors to remain informed and optimistic about the potential recovery and growth of the crypto sector, as articulated by industry leaders such as Binance’s Richard Teng.
Original Source: u.today
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