The U.S. spot Bitcoin ETF market is in turmoil, with net outflows nearly doubling overnight. Investors are pulling funds at an alarming rate, driven by growing uncertainty over President Donald Trump’s controversial proposal for a national crypto reserve. On March 4, Bitcoin ETFs saw $143.43 million in outflows, triggering a wave of liquidations that wiped out millions in trader positions.
Meanwhile, Ethereum ETFs quietly staged a comeback, ending an eight-day losing streak with fresh inflows of $14.6 million.
With Bitcoin and Ethereum moving in opposite directions, the market is at a critical turning point. Here’s what’s happening and what it could mean next.
According to Farside data, Bitcoin spot ETFs recorded a total outflow of $143.5 million, nearly twice the previous day’s $74.19 million.
Fidelity’s FBTC and ARK 21Shares’ ARKB led the outflows, losing $46.08 million and $43.92 million, respectively. Franklin Templeton’s EZBC also faced heavy selling, with investors withdrawing $35.71 million.
Other funds, including Bitwise, Invesco Galaxy, and WisdomTree, also saw outflows. However, Grayscale’s mini Bitcoin Trust recorded a net inflow of $35.77 million, slightly offsetting the losses.
Bitcoin’s price is trading around $87,620, reflecting a 5.4% gain. Despite the rise, the market saw a wave of liquidations, with traders losing $479 million in just 24 hours.
About 159,125 traders were affected, with the biggest single liquidation happening on Binance’s XRP/USDT pair, worth $6.82 million.
After eight consecutive days of outflows, Ethereum spot ETFs saw a net inflow of $14.58 million on March 4. Fidelity’s FETH led with $21.67 million in fresh capital, while Grayscale’s ETHE and mini Bitcoin Trust funds attracted $10.71 million and $8.46 million, respectively.
Meanwhile, BlackRock’s IBIT experienced $26.27 million in outflows, but this did not reverse the overall positive trend.
Ethereum’s price also showed some recovery, surging 6% to trade near $2,200. However, it still faces resistance around the $2,280 level, and if it fails to break through, another decline could follow below $1900.
On the other hand, if Ethereum fails to clear resistance, another drop below $1,900 could follow.
Market swings, liquidations, and record-breaking inflows – just another day in the world of crypto.
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