Bitcoin and Ether exchange-traded funds (ETFs) are seeing record outflows following the euphoria over Donald Trump’s speech. Last week, Bitcoin soared to over $69,000 when Trump spoke at the Bitcoin 2024 conference in Nashville! He announced his intention to fire Gary Gensler, and create a strategic reserve of Bitcoin if elected.
Bitcoin and Ether ETFs Collapse After Trump Speech Euphoria!
The surge in assets was short-lived. Bitcoin ETFs saw net outflows of $18 million, breaking a four-day streak of inflows that had reached as much as $124 million. Grayscale’s IBIT fund led the outflows with $73 million, while Bitcoin products from Fidelity, Ark Invest, Bitwise and VanEck saw outflows ranging from $2 million to $7 million. Only BlackRock’s IBIT fund saw inflows, reaching nearly $75 million.
Meanwhile, Ether ETFs continued to have a rocky start with nearly $100 million in net outputs. Extending a losing streak to four days, assets under management have fallen by nearly $1 billion since the products launched on July 23. Grayscale’s ETHE fund posted the biggest losses at $1.84 billion, while BlackRock’s ETHA fund led inflows at $618 million.
Investors worried!
This volatility is partly due to macroeconomic concerns, including earnings from major U.S. tech companies due this week. Traders are also preoccupied with the FOMC meeting and unemployment data due on Friday. The recent decision by the U.S. Marshals Service to move $2 billion worth of bitcoin to two new wallets has also fueled fears of an imminent selloff.
Although Trump’s announcements initially boosted bitcoin prices, macroeconomic uncertainties and market movements quickly reversed this trend. Investors remain cautious, closely monitoring upcoming economic and political developments.
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