English | Español | Français
Market Cap: $ 3.11 T 24h Vol: $ 83.77 B BTC Share: 62.11%
BTCNEWS
  • Bitcoin
  • ETF
  • Prices
  • Exchanges
  • Glossary
bitcoinBTC/USD
$ 97,041.00 2.53%
No Result
View All Result
BTCNEWS
  • Bitcoin
  • ETF
  • Prices
  • Exchanges
  • Glossary
BTCNEWS
No Result
View All Result
Home Latest

Crypto Enthusiasm Wanes as Bitcoin ETF Withdrawals Surge Amid Trump’s Reserve Plan Doubts

Doubts Cast Over Trump's Cryptocurrency Reserve Proposal as Bitcoin ETFs Experience $143.43 Million in Outflows

Mark Valerius by Mark Valerius
March 5, 2025
Share on FacebookShare on Twitter

Key Points

  • US Bitcoin ETFs witness significant net outflows due to concerns over Trump’s proposed crypto reserve plan.
  • Ethereum ETFs reverse to net inflows, ending an eight-day streak of outflows.

The net outflows of Bitcoin exchange-traded funds (ETFs) in the US nearly doubled recently. This was triggered by market experts expressing apprehension over the crypto reserve plan proposed by US President Donald Trump.

Data from SoSoValue shows that the 12 Bitcoin ETFs recorded $143.43 million in net outflows on March 4. This was almost twice the net inflows of the previous day, which stood at $74.19 million.

Performance of Various ETFs

FBTC from Fidelity and ARKB from ARK 21Shares recorded outflows of $46.08 million and $43.92 million, respectively. Franklin Templeton’s EZBC followed with net redemptions of $35.71 million. Other Bitcoin ETFs contributing to the negative momentum included BITB from Bitwise, BTCO from Invesco Galaxy, and BTCW from WisdomTree, with outflows of $23.96 million, $16.47 million, and $13.07 million, respectively.

Contrarily, Grayscale’s mini Bitcoin Trust recorded a net inflow of $35.77 million, helping to offset some of the day’s outflows. The remaining five Bitcoin ETFs saw no inflows or outflows. These investment products had a daily trading volume of $4.55 billion on March 4, while total net inflows since their launch stood at $36.72 billion.

The nine Ethereum ETFs, on the other hand, shifted back to net inflows on March 4, with $14.58 million entering the funds. This ended an eight-day streak of outflows.

Market Reaction to Trump’s Crypto Reserve Plan

The surge in Bitcoin ETF outflows coincided with market reactions to Trump’s announcement regarding the creation of a U.S. Crypto Strategic Reserve. The proposed reserve would include a mix of crypto assets, primarily Bitcoin and Ethereum, with the goal of positioning the U.S. as the “Crypto Capital of the World.”

However, the plan has faced significant pushback from the crypto community. Critics argue that it contradicts Bitcoin’s fundamental principle of decentralization, raising concerns that a currency designed to be free from government control could now be influenced by U.S. policies.

Anthony Pompliano, CEO of Professional Capital Management and a major crypto investor, expressed his opposition. He described the plan as a mistake the U.S. will regret.

Bitcoin, which surged 11% to an intraday high of $94,770 on Monday, March 3, retraced 13.8% to trade at $81,700 the following day. This was due to investors adopting a risk-off stance amid escalating trade tensions and concerns over the feasibility of the strategic reserve plan. Ethereum also declined, dropping 19% from its recent high to $2,055 on March 4. However, both crypto assets have since recovered, with Bitcoin (BTC) up 3.6% over the past day, trading at $87,163, and Ethereum (ETH) rising 3.6% to $2,180.

Bitcoin’s Struggles in 2025

Uldis Teraudklans, chief revenue officer at Paybis, highlighted Bitcoin’s struggles this year. He noted that Bitcoin’s price has dropped as much as 11.47% year-to-date, whereas gold, facing similar economic uncertainty, has gained 10.65% over the same period.

Referring to a Bank of America survey, which found that 58% of fund managers still view gold as a reliable store of value—especially in case of a trade war—while only 3% trust Bitcoin, Teraudklans remarked that “this year, Bitcoin has proven more reactive to macroeconomic trends, including trade wars and interest rate fluctuations.”

On Bitcoin’s long-term role, Teraudklans stated, “Bitcoin has never been a safe-haven asset—only an aspirational one.” He acknowledged that every market cycle reignites debates about Bitcoin’s viability as a hedge but emphasized that “Bitcoin has consistently been a risk asset, following a long-term trajectory toward becoming a safe-haven, risk-off asset.”

Tags: Bitcoin (BTC)

Related News

US Republican Democrat Trump. Source: Pixabay

Senate Crypto Showdown: Democrats Withdraw Support For Stablecoin Bill

May 5, 2025
crypto etf law

Dogecoin And XRP ETFs In Limbo As SEC Delays Launch Decision

May 5, 2025
Apple iPhone. Source: Pixabay

Apple: NFT And Crypto Apps Get New Freedom On iOS

May 5, 2025
Dubai Sunset. Source: Pixabay

Trump’s Golden Crypto Deal: Family Business Meets Foreign Policy In Dubai

May 2, 2025
bitcoin
Bitcoin (BTC)
Rank: 1
$ 97,041.00
Price (BTC)
Ƀ1.00000000
Marketcap
$ 1.93 T
Volume
$ 25.20 B
24h Change
2.53%
Total Supply
19.86 M BTC

  • About Us
  • Contact
  • Advertise
X-twitter Telegram Facebook Instagram Youtube Medium Linkedin

Information you can trust

BTCNews.com provides Bitcoin news and other cryptocurrency news, reaching millions of crypto enthusiasts daily.

It offers comprehensive coverage of business, financial, and international news related to digital assets.

Serving professionals through digital platforms, industry conferences, and direct updates, BTCNews.com is a premier provider of blockchain and crypto news.

Disclaimer: The information provided by BTCNews.com is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments are highly volatile and involve significant risks.

Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. BTCNews.com is not responsible for any losses incurred due to the use of information provided on this site.

  • © 2008 - 2024 BTCNews.com
  • Terms of Use
  • Privacy
  • Cookies
No Result
View All Result
  • Market
    • Crypto Prices
    • Crypto Exchanges
  • Learn
    • Glossary
  • News
    • Latest

© 2008 - 2024 BTCNews.com