Bitcoin ETFs See Highest Drawdown Since Launch While BTC Reclaims $71,000
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Key points:
Spot Bitcoin ETFs saw their biggest drawdown since launch, with more than $8.9 billion flowing out during the recent market correction, according to CryptoQuant analyst Darkfost.
BlackRock’s iShares Bitcoin Trust was hit the hardest, losing over 42,000 BTC from its peak holdings of more than 806,000 BTC.
On Tuesday, U.S. spot Bitcoin ETFs recorded daily inflows, while spot Ethereum ETFs saw daily outflows.
While Bitcoin hit the $71,000 mark on Wednesday, after a weak February, analysts have flagged that Bitcoin ETFs have seen the largest drawdown since their launch in July of 2024.According to CryptoQuant analyst Darkfost, Spot Bitcoin ETFs suffered their largest drop since inception, while Bitcoin traded below $70,000. This had put a lot of pressure on ETF investors, who had an average cost basis of about $79,000, the analyst said.
During the recent correction, “more than $8.9 billion has flowed out of this market,” said Darkfost. The iShares Bitcoin Trust (IBIT) from BlackRock was hit the hardest, losing more than 42,000 BTC from its peak holdings of more than 806,000 BTC. Despite the sharp outflows, things seem to be getting better, with the drawdown returning to about $7.8 billion from its all-time high. If ETF investors continue to buy more Bitcoin, it could help the price settle down more in the near future.iShares Ethereum Trust ETF (ETHA) was up by 5.36% from its previous close of $14.93. On Stocktwits, the retail sentiment around ETHA changed from ‘neutral’ to ‘bearish’ territory, with chatter at ‘low’ levels over the past day.
Markets React To Rising Geopolitical Conflict
The sharp rise in Bitcoin’s price comes amid the geopolitical background where Israeli and US strikes on Iran continued, while Israel reportedly intensified attacks on Tehran and Beirut. In response to the escalating conflict, the Association of Southeast Asian Nations (ASEAN) released a statement saying it would closely monitor the situation and expressed “serious concern” over the escalation.
The bloc warned that the conflict posed risks to civilian safety and regional and global stability and called on all countries to respect international law and the United Nations Charter.
Previously, analyst George Tung cited historical data and stated that while Bitcoin’s price initially reacts negatively to war headlines, ETF inflow surges, pushing prices back up.
XRP, Solana ETFs See Daily Gains, Ethereum ETFs Buck The Trend
As of Tuesday, U.S. spot Bitcoin ETFs saw a net inflow of $225.15 million every day. At the same time, U.S. spot Ethereum ETFs lost $10.75 million every day. U.S. spot XRP ETFs had a daily net inflow of $7.53 million, while U.S. spot Solana ETFs had a smaller daily net inflow of $1.03 million.
iShares Ethereum Trust ETF (ETHA) was up by 5.36% in pre-market hours. On Stocktwits, the retail sentiment around ETHA changed from ‘neutral’ to ‘bearish’ territory, with chatter at ‘low’ levels over the past day.
The largest inflow was seen in the Bitwise XRP ETF, the largest XRP ETF, up 0.38% in pre-market hours. Similarly, Bitwise Solana Staking ETF (BSOL) was up 6.49% pre-market hours. On Stocktwits, retail sentiment around XRP ETF remained in the ‘neutral’ territory, while BSOL was in the ‘bearish’ zone.
source: https://www.tradingview.com/news/stocktwits:a749edbb8094b:0/
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