- Fidelity experienced outflows exceeding $135 million, while BlackRock investors withdrew $90 million.
- ARK 21Shares Bitcoin ETF reported outflows of $147 million.
- Donald Trump’s unpredictable tariff strategies have caused widespread market anxiety.
Bitcoin exchange-traded funds, popular among baby boomer HODLers, faced a staggering drop of nearly half a billion dollars in holdings in just one day as investor fear took hold.
On Monday, with a sharp decline in US stock indexes, investors withdrew $430 million from US spot Bitcoin ETFs. Ark Invest’s Bitcoin ETF, ARK 21Shares, was the most affected, with $147 million in outflows, as reported by Coinglass.
In addition, JPMorgan’s analysis indicated that Fidelity saw $135 million in outflows, while BlackRock’s IBIT experienced $90 million in sales.
Ethereum ETFs were also adversely affected, with investors pulling $34 million from Fidelity, Grayscale, and Bitwise products, according to JPMorgan’s investor note released on Tuesday.
The severe fluctuations in the crypto market can be attributed to macroeconomic factors, as Trump’s erratic tariff strategy continues to shake investor confidence in the US economy.
This situation has overshadowed optimism linked to Trump’s recent summit, where he and industry leaders, including Michael Saylor, touted cryptocurrencies as an essential strategic asset for the US.
According to JPMorgan analysts, Bitcoin “remains vulnerable to diminishing macroeconomic support, despite the positive crypto stance emerging from the White House.”
Since the initiation of Trump’s fluctuating tariff policies in early February, the overall crypto market has seen a reduction of $500 billion in total value. Additionally, the entire market has contracted nearly 25% since his inauguration.
Now, the already struggling crypto landscape must also contend with fears of a recession.
Bitcoin Strategic Reserve
However, it’s not entirely negative.
There is a wealth of positive news regarding crypto coming out of Washington.
On Tuesday, the White House conducted its first-ever crypto summit.
Trump has ordered the establishment of a strategic reserve comprising nearly 200,000 Bitcoin, valued at around $16 billion, to be managed by the US government. Meanwhile, Saylor plans to accumulate an additional $21 billion in Bitcoin through his company, Strategy.
On March 10, trading volume for both Bitcoin and Ethereum ETFs saw significant increases, according to JPMorgan analysts.
Bitcoin ETFs recorded $5 billion in trading activity, nearly doubling the daily average of $2.7 billion since their launch on January 11.
Ethereum ETFs had a trading volume of $662 million, up from a $338 million daily average.
To $70,000
Some analysts are advising investors to prepare for additional declines.
While Bitcoin stabilized at $81,000 on Tuesday, its future performance remains uncertain.
According to Mena Theodorou, co-founder of the crypto exchange Coinstash, Bitcoin could potentially drop to as low as $69,000.
Similarly, Arthur Hayes, CIO of Maelstrom fund, has also forecasted a low of $70,000.
For anxious investors, Hayes offered advice on X: “Be fucking patient.”
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at [email protected].
