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Bitcoin ETFs return to outflows amid market jitters over US tariffs and crypto reserve fund

Bitcoin ETFs return to outflows amid market jitters over US tariffs and crypto reserve fund
Spot Bitcoin ETFs in the U.S. experienced outflows on March 3 as Bitcoin retreated due to trade tensions and skepticism over a U.S. crypto reserve fund. Data from SoSoValue showed that 12 spot Bitcoin ETFs saw $74.19 million leave the funds, following a previous day of net inflows totaling $94.34 million. Outflows were led by BlackRock's IBIT and Grayscale's GBTC, while ARK and 21Shares' ARKB saw net inflows. The total daily trading volume for these products stood at $5.99 billion, and total net inflows since their launch amounted to $36.97 billion. In addition, nine Ethereum ETFs recorded outflows for the eighth consecutive day, with BlackRock's ETHA leading the negative flow. The outflows coincide with a risk-off sentiment related to trade tensions and concerns over the U.S. crypto reserve plan. Bitcoin retraced 9.5% to trade at $84,011, and Ethereum dropped 13.8% to $2,098. However, crypto research strategist Matt Mena believes the market reaction is driven by an overreaction and that these developments are laying the groundwork for long-term growth and financial integration.

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