Bitcoin exchange-traded funds (ETFs) in the US have experienced their largest-ever two-week outflow as investor sentiment weakened due to escalating trade tensions between the US and China.
According to data from Sosovalue, spot Bitcoin ETFs saw a net outflow of more than $1.14 billion in the two weeks leading up to Feb. 21. This marks the biggest two-week withdrawal period since these funds launched on Jan. 11, 2024.
This recent sell-off slightly surpassed the previous record set in the two weeks leading up to June 21, 2024, when $1.12 billion exited Bitcoin ETFs while Bitcoin traded around $64,000.
Marcin Kazmierczak, co-founder and COO of blockchain oracle provider RedStone, emphasized that ETF flows serve as a strong gauge of Bitcoin sentiment among major institutional investors. However, he noted that short-term movements don’t tell the full story, stating:
“A monthly timeframe alone doesn’t provide enough context. ETFs are generally long-term investment vehicles, so looking at flows over six months or a year gives a clearer picture.”
Zooming out, net inflows remain positive in the long run, he added.
Trade Tensions and Economic Policy Weigh on Bitcoin ETFs
The record-breaking ETF outflows appear to be largely driven by concerns over US-China trade relations, particularly following new import tariffs. Investors are awaiting a potential meeting between US President Donald Trump and Chinese President Xi Jinping, which could help ease trade uncertainties.
Trump has stated that Xi may visit the US and hinted at the possibility of a new trade deal, though he did not specify a timeline, according to a Reuters report on Feb. 20.
Beyond trade disputes, other economic factors are also impacting investor sentiment. Kazmierczak pointed out that expectations around interest rates, regulatory shifts, and overall market conditions all play a role in ETF flows.
Despite the short-term outflows, institutional investors remain engaged. Kazmierczak highlighted that entities like the Abu Dhabi Sovereign Wealth Fund and Wisconsin’s Pension Fund continue to maintain significant Bitcoin ETF holdings despite the recent selling pressure.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
