US Bitcoin ETFs experienced significant outflows totaling $1.14 billion over a two-week period, marking the largest withdrawals since their inception. This sell-off, influenced by rising trade tensions between the US and China, occurred in the weeks leading up to February 21. The withdrawal surpassed the previous record set in June 2024 when outflows hit $1.12 billion. Industry experts note that ETF flows can be reflective of market sentiment among major asset management firms. While these short-term outflows are concerning, Marcin Kazmierczak, co-founder of RedStone, cautions against overreacting, suggesting that long-term purchasing patterns indicate a more positive outlook. The market is also contending with factors such as interest rate expectations and regulatory developments, alongside the geopolitical climate. Nonetheless, large investors are expected to maintain their positions in Bitcoin despite the current market fluctuations.

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