Bitcoin ETFs Maintain Outflow Trend as BTC Struggles with Geopolitical Tensions

Bitcoin ETFs have continued to experience net outflows, with another $71.07 million leaving spot Bitcoin ETFs on February 19. This marks the second consecutive day of outflows, following $60.63 million in redemptions the previous day.

The majority of the outflows came from Fidelity’s FBTC, which saw $48.39 million withdrawn. Other Bitcoin ETFs such as Valkyrie’s BRRR, ARK 21Shares’ ARKB, and VanEck’s HODL saw outflows of $9.27 million, $8.65 million, and $4.77 million, respectively. The remaining Bitcoin ETFs, including BlackRock’s IBIT (the largest Bitcoin ETF by net assets), experienced no significant movement in flows.

In terms of trading volume, Bitcoin ETFs saw a dip, with daily trading volume falling to $2.05 billion on February 19, down from $2.83 billion the day before.

While Bitcoin ETFs saw outflows, spot Ethereum ETFs experienced positive inflows. The nine Ethereum ETFs collectively recorded $19.02 million in inflows, with Fidelity’s FETH accounting for the entire gain, adding $24.47 million. However, Grayscale’s ETHE saw $5.45 million in redemptions, partially offsetting the gains.

Bitcoin’s price is currently trading around $97,122, still below its recent high of $109,200. The drop can be attributed to a combination of factors, including delayed crypto regulations, ongoing geopolitical tensions (such as the U.S.-China tariff dispute), and uncertainty surrounding the potential creation of a U.S. Strategic Bitcoin Reserve under a possible Trump administration. The market appears to be in a consolidation phase, with investors taking profits amid these macroeconomic concerns.

Hillary Alder, co-founder and CCO of BitcoinOS, mentioned that the recent outflows from Bitcoin ETFs suggest that investors are repositioning their portfolios due to macroeconomic factors, including the fading optimism around the Strategic Bitcoin Reserve.

While Bitcoin has seen a slight 1.6% increase over the past day, Ethereum has also seen a modest rise of 1.4%, trading at $2,729 per coin.

This mixed market sentiment highlights the ongoing uncertainty and consolidation in the crypto space, with investors closely monitoring regulatory developments and geopolitical events.