In a surprising turn, over $1 billion has been withdrawn from Bitcoin exchange-traded funds (ETFs) in just two days, signaling a potential shift in investor sentiment. According to posts on X, this significant outflow, particularly from Grayscale’s Bitcoin ETF, suggests hedge funds may be unwinding basis trades rather than a broad retail panic. This comes as $BTC hovers near $112,000, following a rally driven by institutional interest and a favorable regulatory environment after the SEC dropped its Binance lawsuit.
The withdrawals coincide with market volatility sparked by President Trump’s tariff policies, which have caused uncertainty in global markets. Despite the outflows, analysts note that Bitcoin’s resilience remains strong, with 98% of wallet addresses in profit. BlackRock’s iShares Bitcoin Trust (IBIT) continues to lead inflows, recently recording $530.6 million in a single day, highlighting a divergence in investor strategies.
Some speculate these moves could signal a short squeeze, as whales or institutions reposition for long-term gains. With Bitcoin’s price trajectory still bullish, the market is closely watching for further developments. Stay informed on crypto trends and market shifts by following #MiningUpdates
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