U.S. Bitcoin ETFs have just seen their worst two-week sell-off since their launch, with a staggering $1.14 billion flowing out by Feb. 21, according to Sosovalue. The timing isn’t random—investors are rattled by intensifying trade tensions between the U.S. and China, particularly after new import tariffs were announced. With no clear resolution in sight, traders are pulling back.
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ETF Outflows Signal Weak Sentiment but Not a Long-Term Trend
Bitcoin ETF flows often serve as a sentiment gauge for major asset managers, according to RedStone co-founder Marcin Kazmierczak. He told Cointelegraph that while short-term data looks bad, it doesn’t paint the full picture. “ETFs are generally considered long-term investment vehicles, so analyzing flows over a six-month or yearly period gives a more meaningful perspective,” he explained. Over a broader timeline, net flows remain positive.
Interest Rates and Market Uncertainty Add to Selling Pressure
Trade tensions aren’t the only factor weighing on Bitcoin ETFs. Investors are also watching interest rate expectations and broader regulatory uncertainty. Still, not all big players are bailing. Kazmierczak noted that institutions like Abu Dhabi’s Sovereign Wealth Fund and Wisconsin’s Pension Fund remain invested through ETFs, despite the sell-off.
With geopolitical tensions and monetary policy shifting, investors should track how these developments may impact Bitcoin ETF prices on TipRanks.
