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Large Fund Outflows from Bitcoin ETFs
The launch of 11 spot Bitcoin ETFs in the US was met with great excitement by investors. In January, many investors shifted from Grayscale Bitcoin Trust to funds such as IBIT from BlackRock and FBTC from Fidelity. However, this movement was short-lived, and a decline began in February.
February has been one of the worst months for Bitcoin ETFs so far. Only 4 days saw net inflows throughout the month: (4, 5, 7, and 14 February). A significant outflow of 364.8 million dollars was recorded on 20 February. Even the largest BTC ETF in the world, IBIT, saw a net outflow of 112 million dollars. Total outflows have reached 1.1 billion dollars since 6 February, marking the worst monthly performance since the launch of ETFs.
Investor Sentiment Weakened in February
The waning interest in Bitcoin ETFs shows that investors are starting to avoid risks and approach price movements more cautiously. February, which is generally seen as a strong month, did not meet expectations this time. The continuous outflows from ETFs put pressure on the Bitcoin price, and investor sentiment gradually weakened.
The increase in fund outflows leads to a decrease in market liquidity, indicating a decrease in institutional investors' appetite for crypto assets. If this trend continues, the price of BTC may face more selling pressure in the upcoming period.
The Latest Situation in Ethereum ETFs
Ethereum ETFs outperformed Bitcoin ETFs. Despite a $307.8 million inflow at the beginning of February, investments declined in the following days. However, outflows in Ethereum funds were observed to be more limited compared to Bitcoin.
During the past week, ETH ETFs closed the week with outflows of $13.1 million and $8.9 million after experiencing four days of net inflows. Although Ethereum ETFs still appear to be more resilient than Bitcoin, fluctuations in investor interest are increasing market uncertainty. If ETF inflows do not increase again, Ethereum may also face more pressure like Bitcoin.()#Sonic (S) Price and Ecosystem Growth##PI Price Trend Analysis