In the United States, there has been a wave of disruption with net outflows totaling $1.14 billion over the past two weeks. These withdrawals represent the largest outflow period since their launch on January 11, 2024, exceeding $1.12 billion in outflows in June 2024. Several factors, including trade tensions between the United States and China, as well as monetary policy expectations, contributed to this trend.

Key points of this article:

Bitcoin exchange-traded funds in the United States saw net outflows of $1.14 billion in two weeks, a record since their launch.

Withdrawals were due to trade tensions between the United States and China and uncertainty regarding U.S. monetary policy.

Massive outflows from Bitcoin exchange-traded funds

Data from Sosovalue reveals that Bitcoin exchange-traded funds experienced a cumulative net outflow of $1.14 billion over the past two weeks. This marks the largest withdrawal period since they were listed on the stock exchange in January 2024. This selling movement has been mainly attributed to trade tensions between the United States and China, which have been exacerbated by the announcement of new tariffs.

Furthermore, expectations regarding the monetary policy of the U.S. Federal Reserve have also impacted investor sentiment. The combination of these factors has led to significant selling pressure on Bitcoin exchange-traded funds.

Despite these short-term outflows, some experts remain optimistic about the long-term prospects of Bitcoin exchange-traded funds. Marcin Kazmierszak, co-founder of RedStone, told CoinTelegraph that net flows over a longer period remain positive.

Moreover, it was also noted that exchange-traded funds are generally viewed as long-term investment tools, and analyzing flows over six months or a year provides a more viable perspective.

"And when we take a step back, we see that net flows have been largely positive over the longer term."

In fact, despite the recent outflow, major players such as the Abu Dhabi Sovereign Fund and the Wisconsin Retirement Fund still hold large positions in Bitcoin through exchange-traded funds.

The net outflow of $1.14 billion from Bitcoin exchange-traded funds reflects a period of volatility influenced by trade tensions, economic uncertainty, and Bybit's exposure to a major hack last Friday. However, long-term prospects remain positive, with net flows generally being positive. As tensions between the United States and China continue, investors are closely monitoring political and economic developments that could impact the cryptocurrency market.

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