Bitcoin and Ethereum ETFs experience large withdrawals, what’s the cause?

Jakarta, Pintu News – The instability of the crypto market continues, affecting investment products such as Exchange Traded Funds (ETFs). Investors appear to be increasingly cautious, resulting in significant withdrawals from ETFs based on Bitcoin BTC0.38%->Current BTC PriceRp 1.369.279.2700.38%Market CapRp 33.034 TriliunTrading VolumeRp 1.590 TriliunCirculating SupplyRp 19.797.675 and Ethereum ETH1.21%->Current ETH PriceRp 31.427.7351.21%Market CapRp 7.444 TriliunTrading VolumeRp 594,65 TriliunCirculating SupplyRp 120.452.072.

Fund Expenditures from Bitcoin ETFs

The latest data from Sosovalue shows a continued trend of withdrawals from Bitcoin (BTC) ETFs, with net withdrawals reaching $371 million on March 11. This was the seventh consecutive day of outflows. BlackRock’s ETF IBIT recorded the largest withdrawal with $151.26 million, followed by Fidelity’s FBTC which recorded a withdrawal of $107.10 million.

Other ETFs such as Grayscale’s GBTC also saw withdrawals of $35.49 million. These withdrawals reflect a cautious sentiment among investors, who may be responding to market fluctuations or taking advantage of previous price increases. Other ETFs such as Franklin’s EZBC and WisdomTree’s BTCW also recorded withdrawals, indicating a similar trend across the market.

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Ethereum ETFs Follow the Trail

ETFs based on Ethereum (ETH) were also not spared from investor withdrawals. BlackRock’s ETHA recorded the largest withdrawal with $11.82 million, followed by Fidelity’s FETH with a withdrawal of $9.75 million. This marks the fifth consecutive day of withdrawals from Ethereum (ETH) ETFs, suggesting that similar concerns apply to this crypto asset as well.

This withdrawal marks a change in market sentiment and a more cautious approach among institutional investors. Despite the withdrawals, the price of Ethereum (ETH) is still showing gains, signaling that confidence in the crypto’s long-term potential still exists.

Speculation and Short-Term Investment Strategies

Although the US-based ETF has experienced significant inflows since its debut in January 2024, a report from 10x Research shows that only 44% of the $17.5 billion is a long-term investment. The remaining 56% was driven by short-term arbitrage strategies such as “carry trades”.

This suggests that many market participants are more likely to speculate than commit to holding the asset for the long term. Despite the outflows from ETFs, the overall crypto market remained resilient. Bitcoin (BTC) rose 1.84% to $83,059.99 and Ethereum (ETH) rose 0.96% to $1,917.66. This shows that, despite the withdrawal from ETF-based products, investor confidence in the long-term potential of crypto remains intact.

Conclusion

Fund withdrawals from Bitcoin (BTC) and Ethereum (ETH) ETFs signal caution in the volatile crypto market. Despite short-term concerns, the price growth of Bitcoin (BTC) and Ethereum (ETH) shows that investors still see value in long-term crypto investments. Going forward, it will be interesting to see how investors adjust their strategies amid market uncertainty.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• AMB Crypto. Bitcoin, Ethereum ETFs bleed millions: Profit-taking or nerves about the market?. Accessed on March 14, 2025
• Featured Image: Crypto Economy