Bitcoin ETF Inflows Plummet Amidst Uncertainty Over US Strategic Reserve

On February 5, inflows into spot Bitcoin exchange-traded funds (ETFs) in the US experienced a significant slowdown, following comments from a prominent advisor to former President Donald Trump regarding the potential implementation of a national strategic Bitcoin reserve.

Bitcoin ETF Inflows Slow Down

According to recent data, the 12 spot Bitcoin ETFs recorded $66.38 million in net inflows on Wednesday, marking an 80% decrease from the $340.82 million seen the previous day. The majority of these inflows went into BlackRock’s IBIT, with $44.35 million entering the fund. Other notable contributors included WidomTree’s BTCW and Fidelity’s FBTC, with inflows of $11.38 million and $10.65 million, respectively.

The total trading volume for these investment products stood at $2.04 billion on February 5, while the total net inflows into them since launch day reached $40.67 billion.

Uncertainty Surrounding US Strategic Bitcoin Reserve

The decline in inflows on Wednesday likely stemmed from uncertainty surrounding the US government’s stance on a strategic Bitcoin reserve. This concept, which former President Trump

promised

months before the presidential election, has yet to materialize. Trump’s crypto policy advisor recently stated that exploring the feasibility of a strategic BTC reserve remains a top priority, but failed to provide any new developments on its implementation.

This uncertainty has led to cautious sentiment among BTC investors, contributing to the recent decline in inflows.

At the time of writing, Bitcoin was trading at $97,847 per coin, down 0.4%.

Ether ETF Inflows Also Decline

The nine spot Ethereum ETFs experienced an even more significant drop in net inflows, which stood at $18.11 million on February 5, down from $307.77 million the previous day. Fidelity’s FETH led the way with $20.06 million in inflows, while Grayscale’s mini Ethereum Trust followed, drawing in $5.21 million from investors.

Grayscale’s larger ETHE fund was the only outlier of the day, recording a net outflow of $7.16 million. The remaining ETH ETFs remained neutral, with the spot Ether ETFs experiencing a cumulative total net outflow of $3.17 billion.

At the time of writing, Ethereum was trading at $2,835, up 2.5%.

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