The U.S. spot Bitcoin ETF market is in disarray, with net outflows nearly doubling overnight as investor fears mount over former President Donald Trump’s controversial proposal for a national crypto reserve. On March 4, Bitcoin ETFs saw a staggering $143.43 million in outflows, triggering a wave of liquidations that wiped out millions in trader positions.
Bitcoin ETFs Bleed as Investors Pull Out
According to Farside data, Bitcoin spot ETFs recorded a total outflow of $143.5 million, marking a sharp increase from the previous day’s $74.19 million. Leading the losses were Fidelity’s FBTC and ARK 21Shares’ ARKB, which saw outflows of $46.08 million and $43.92 million, respectively. Franklin Templeton’s EZBC was also hit hard, with investors withdrawing $35.71 million.
Other funds, including those managed by Bitwise, Invesco Galaxy, and WisdomTree, suffered outflows as well. However, Grayscale’s mini Bitcoin Trust provided a slight cushion, registering a net inflow of $35.77 million.
Bitcoin Price Volatility and Liquidations
Despite the ETF outflows, Bitcoin’s price surged to $87,620, reflecting a 5.4% gain. However, this rally came at a steep cost, as the market witnessed $479 million in liquidations over the past 24 hours. Around 159,125 traders were affected, with Binance’s XRP/USDT pair experiencing the largest single liquidation worth $6.82 million.
Ethereum ETFs Stage a Comeback
While Bitcoin ETFs faced a sell-off, Ethereum ETFs experienced a turnaround. After eight consecutive days of outflows, Ethereum spot ETFs attracted $14.58 million in fresh capital on March 4. Fidelity’s FETH led the inflows with $21.67 million, while Grayscale’s ETHE and mini Bitcoin Trust funds secured $10.71 million and $8.46 million, respectively. However, BlackRock’s IBIT recorded $26.27 million in outflows, slightly dampening the overall positive trend.
Ethereum’s price also showed resilience, climbing 6% to trade near $2,200. However, strong resistance at the $2,280 level remains a key hurdle. If Ethereum fails to break through, analysts warn that another decline below $1,900 could follow.
Also Read: Crypto Market Crashes as Bitcoin & Ethereum Plummet Ahead of White House Summit
With Bitcoin and Ethereum moving in opposite directions, the market stands at a critical juncture. Investors will be watching closely as uncertainty surrounding crypto regulations and ETF dynamics continues to unfold.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
