Key Points
- U.S. Bitcoin ETF inflows slowed down on Feb. 5 due to uncertainty about a national strategic Bitcoin reserve.
- Ethereum ETF inflows also experienced a significant drop on the same day.
On February 5th, inflows into U.S. Bitcoin exchange-traded funds (ETFs) slowed down. This slowdown followed comments from Trump’s crypto policy advisor about the possible creation of a national strategic Bitcoin reserve.
Bitcoin ETFs see decreased inflows
Data from SoSoValue showed that the 12 Bitcoin ETFs recorded net inflows of $66.38 million. This figure was 80% lower than the previous day’s inflows of $340.82 million. BlackRock’s IBIT had the most inflows, with $44.35 million entering the fund.
WidomTree’s BTCW and Fidelity’s FBTC also saw positive inflows of $11.38 million and $10.65 million, respectively. However, the remaining nine Bitcoin funds saw neither inflows nor outflows on that day.
The total trading volume for these investment products was $2.04 billion on February 5. Since their launch, these funds have seen a total net inflow of $40.67 billion.
Uncertainty around U.S. strategic Bitcoin reserve
The decrease in inflows likely resulted from a recent discussion about President Donald Trump’s vision for America’s digital asset landscape. The crypto czar did not provide any new information about the establishment of a strategic Bitcoin reserve, only stating that it remains a priority for the crypto council.
This uncertainty about the U.S. government’s stance on a strategic Bitcoin reserve, which Trump promised before his election, has led to cautious sentiment among Bitcoin investors. At the time, Bitcoin was down 0.4%, trading at $97,847 per coin.
Ethereum ETF inflows also decline
On February 5, the nine spot Ethereum ETFs also saw a significant drop in net inflows, which were at $18.11 million, down from $307.77 million the previous day.
Fidelity’s FETH led with inflows of $20.06 million, while Grayscale’s mini Ethereum Trust followed with $5.21 million. However, Grayscale’s larger ETHE fund recorded a net outflow of $7.16 million. The remaining Ethereum ETFs remained neutral.
The spot Ether ETFs have seen a cumulative total net outflow of $3.17 billion. At the same time, Ethereum was up 2.5% and was trading at $2,835.
