Bitcoin listed funds (ETFs) in US cash, once an optimistic engine for investors, have faced weeks of turbulence.
From the beginning of February until the present, capital flows to these financial products have collapsed; A certain output may be dragging the price of digital currency It’s big because of its market capitalization.
According to a graphics presented by ETF specialists at Bloomberg Intelligence, total tickets for Bitcoin ETFs have dropped from around $35,000 million to about $35,000 million in just a month.
This represents a $5,000 million reductionby entering the market, it equals 14% less fresh capital.
On March 13th, between mid-February and yesterday, ETFS registered only four-day tickets, adding only $200 million. In contrast, February 25th was the best day of departure, marking a record of $1,000 million GlassNode data that disappeared in just 24 hours.
Investors will not abandon Bitcoin ETFs
Despite this trend, these funds’ managed assets (AUM) They remain at $115,000 million.
The data reveals that while new money flows are stagnant, most investors have not left the ship.
Bulknath then emphasized that over 95% of the capital invested resisted the company even if the price of Bitcoin fell by 25%. Today it’s $83,000, far from the $109,300 beak that reached January.
loss Baby Boomer Generation To the helm
Balchunas refers to unexpected groups as anchors for this stability. Baby Boomer Generation. This demographic segment was born between 1946 and 1964. Known for his traditional investment experience, he appears to be working at the helm with a long-term vision..
Experts say his perseverance is in contrast to the impulsivity that is often associated with younger investors, allowing ETFs to support the storm without mass collapse.
Why do ETFs move price needles?
The relationship between ETFs and Bitcoin prices is directly related. These funds buy and maintain currency to support their actions.
When investors withdraw money, managers must sell a portion of their Bitcoin reserves to cover their redemptions. Without comparable demand to balance the supply, this increase in supply pushes downward prices.
Therefore, sustained departures from February onwards could be a significant factor in recent asset declines.
Beyond ETFs: Global tariffs and tensions
However, panorama is not limited to ETF movement. Other external elements are also the weight of Bitcoin..
Donald Trump’s commercial policy, which was envisaged for presidency in January, added uncertainty to the market.
On March 4, 25% tariffs entered imports from Mexico and Canada, and 20% entered Chinese products. Though these measures were postponed until April after negotiations, as reported by encryption.
This week we saw an additional 25% tariff (50% total) on aluminum and Canada steel. And on Wednesday, 25% was applied to the same metals in the European Union
These decisions to strengthen local industries are They created tensions in the global market, affecting assets that are considered “risk” such as Bitcoin. The combination of commercial tensions and ETF dynamics derive complex scenarios of currency.
Long-term Bitcoin Up Horizon
Bitcoin, which serves as a shelter against inflation and traditional monetary policy, is currently facing fire testing.
The ETF output is thwarting recovery along with international economic turbulence. The baby boomer generation is calm, but the rest of the market is carefully observed.
But BlackRock’s head of digital assets, Robbie Mitchnick, points out that Bitcoin’s gold property will make it attractive in 2025. In this sense, the specialist is Maintain long-term bullish expectations for this asset as a value reserve.
(tagstotranslate)Bitcoin (BTC)
