Bitcoin ETFs Face Outflows Amid Geopolitical Tensions

Bitcoin ETFs continue to experience outflows as geopolitical tensions and regulatory delays weigh on the cryptocurrency market. On Feb. 19, spot Bitcoin ETFs in the U.S. saw net outflows of $71.07 million, extending a two-day streak of outflows. The majority of these outflows came from Fidelity's FBTC, with $48.39 million withdrawn by investors. Other ETFs, such as Valkyrie's BRRR, ARK 21Shares' ARKB, and VanEck's HODL, also experienced net redemptions.

Meanwhile, Ethereum ETFs continued their positive streak, with inflows tripling to $19.02 million on Feb. 19. Fidelity's FETH recorded the entire inflows, while Grayscale's ETHE saw net redemptions of $5.45 million. The mixed market scenario reflects a broader shift in sentiment, with Bitcoin falling below $95,000 recently and experiencing a continued downtrend since hitting its all-time high of $109,200 last month.

Fading optimism about the possible creation of a Strategic Bitcoin Reserve in the U.S. under a potential Trump administration, along with delayed crypto regulations and geopolitical tensions, such as U.S.-China tariff conflicts, are extending Bitcoin's consolidation phase. Hillary Alder, co-founder and CCO of BitcoinOS, attributed the sharp outflows in recent days to investors taking profits and repositioning due to macroeconomic factors and waning confidence in Trump approving a Strategic Bitcoin Reserve in the U.S.

At the time of this report, Bitcoin (BTC) was up 1.6% over the past day, trading at $97,122, while Ethereum (ETH) had also risen 1.4% to $2,729 per coin.