Bitcoin, Ethereum ETFs Shed $2.6 Billion in Assets Over the Past Week

Core Insights - Investors have withdrawn a total of $2.6 billion from U.S. Bitcoin and Ethereum exchange-traded funds (ETFs) in the past week, marking one of the largest redemption periods in the funds' history [1] - Bitcoin's price has dropped below $100,000 for the first time since May, currently trading at approximately $103,428, which is about 18% lower than its October peak of $126,080 [2] - Ethereum has seen a price increase of over 5% in the last 24 hours, trading at $3,439, but has decreased by 13% over the past week [2] - The decline in crypto investments is attributed to macroeconomic concerns, including trade tensions, government shutdowns, low market liquidity, and reduced expectations for U.S. interest rate cuts [3] ETF Performance - Bitcoin and Ethereum ETFs have experienced significant outflows, with over $1.9 billion leaving Bitcoin funds and $718.9 million withdrawn from Ethereum funds since October 29 [1] - The Bitcoin ETFs had a successful debut in January 2024, managing a total of $145.4 billion in assets [5] - Despite recent outflows, the Bitcoin price has remained stable due to strong institutional inflows, indicating the maturation of the asset class [6] Historical Context - In February, Bitcoin ETFs faced a significant outflow of over $2.2 billion over eight consecutive days following tariff announcements by the U.S. President [4] - The current outflows represent only 2% of the total assets in Bitcoin ETFs, suggesting that the impact may not be as severe as it appears [6]