US Spot Bitcoin ETFs Record Third Consecutive Day of Net Outflows

US spot Bitcoin exchange-traded funds (ETFs) have recorded their third consecutive day of net outflows, with a total of $38.3 million exiting the funds on March 5. This trend extends the outflow streak to three days, with $74.19 million and $143.43 million in net redemptions on Monday and Tuesday, respectively.

Outflows Led by Valkyrie’s BRRR

The majority of the outflows came from Valkyrie’s BRRR, with $60.42 million exiting the fund. Invesco Galaxy’s BTCO and Bitwise’s BITB also saw outflows of $9.94 million and $6.87 million, respectively. However, BlackRock’s IBIT, the largest Bitcoin ETF in terms of net assets held, managed to offset part of the outflows by drawing in $38.93 million from investors.

The total trading volume recorded by these investment vehicles stood at $3.27 billion on March 5. The remaining eight Bitcoin ETFs saw zero flows on the day.

Ethereum ETFs Return to Outflows

Meanwhile, the nine Ethereum ETFs returned to outflows on March 5, with $63.32 million exiting the funds following a day of $14.58 million in net inflows. The entire outflow seen on Wednesday came from Grayscale’s ETHE, which has the highest fees among Ethereum ETFs. The remaining Ethereum funds saw no flows on the day.

Uncertainty Around US Crypto Strategic Reserve

The significant outflows from both Bitcoin and Ethereum ETFs appear to be linked to growing uncertainty around former President Donald Trump’s proposal for a US Crypto Strategic Reserve. This idea aims to strengthen the US’s position in the crypto space, but has sparked debate within the crypto community.

Many in the crypto community view it as contradictory to Bitcoin’s decentralized nature, raising concerns about potential government influence over an asset designed to be independent.

Market Impact and Analyst Expectations

Initially, the announcement provided a boost to the digital asset market, but that rally was short-lived as another wave of selling pressure emerged. Despite this, Bitcoin and the broader crypto market have managed to recover some ground, with BTC climbing back near $92,500 and the total market cap remaining above $3.1 trillion.

Analysts expect more price swings in the near term, particularly amid ongoing geopolitical tensions and trade uncertainties. Historical data from Bitcoin’s volatility index suggests that March could see heightened turbulence before potential stabilization in April, which might ease some selling pressure.

At press time, Bitcoin was up 6.3% over the past day, exchanging hands at $92,710, while Ethereum was trading 5.9% higher at $2,299 per coin.

For more cryptocurrency news and updates, visit Global Crypto News.

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