The cryptocurrency market is awash with a sharp sell-off from US-based exchange-traded funds (ETFs). The massive outflow of hundreds of millions of dollars in total from spot Bitcoin and Ethereum ETFs on February 19 clearly shows that institutional investors have lost their appetite. This withdrawal process, which has been continuing for three days, shows that a cautious expectation prevails in the cryptocurrency world.
Third Consecutive Loss on Bitcoin Front
The net outflow of $166 million from the Spot Bitcoin ETF wing was the last link of the negative momentum in the market. These ETFs traded in the US markets closed the third day in a row with red numbers as of February 19, fueling anxiety among investors. These cash outflows are a strong signal that short-term confidence in the leading cryptocurrency has been shaken.
Market actors generally attribute this withdrawal to macroeconomic uncertainties and profit realization. As institutional portfolios reduce their risk appetite, the selling pressure on Bitcoin ETFs is getting heavier. While this three-day period is recorded as one of the most striking negative series of the recent period, it proves how dominant the “wait-and-see” strategy has become in the market.
Ethereum and BlackRock Effect
On the Ethereum side, the landscape is not much different from Bitcoin; because spot Ethereum ETFs lost $130 million on the same day. The most striking aspect of this picture was that BlackRock, the world’s largest asset management company, led the outflows from the ETHA ETF with $96.8 million. This reduction in the giant fund manager’s portfolio confirmed that institutional demand for Ethereum has weakened and short-term uncertainty has deepened.
The decline in interest in the Ethereum ecosystem is not just a technical correction, but also a reflection of a change in market sentiment. This massive sale seen in the ETF of a giant such as BlackRock created a domino effect on other ETFs, bringing the total outflow amount to 130 million dollars. Market experts consider this data to be one of the biggest drags on Ethereum’s short-term price performance.
