Bitcoin ETFs face large outflows as geopolitical risks rise
The outflows coincided with a $4,000 drop in Bitcoin prices due to missile strikes in the Middle East.
Rising geopolitical tensions have led to a significant outflow of funds from US Bitcoin ETFs, with institutional investors withdrawing almost $243 million from these financial products. This marks the largest single-day outflow in nearly a month and follows eight consecutive days of positive inflows.
Fidelity’s Wise Origin Bitcoin Fund experienced the largest withdrawal, losing $144.7 million, followed by ARK’s 21Shares Bitcoin ETF, which saw $84.3 million in outflows. Several other ETFs also suffered notable losses, though BlackRock’s iShares Bitcoin Trust managed to record $40.8 million in inflows, marking its 15th consecutive positive day.
The outflow coincided with a sharp decline in Bitcoin prices, which fell by nearly $4,000 following missile strikes in the Middle East. Ethereum ETFs also witnessed significant outflows, with Grayscale and Fidelity products shedding substantial amounts.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
