In a peculiar twist of fate, Bitcoin exchange-traded funds (ETFs) experienced a net outflow of nearly $370 million on March 7, as investors grappled with President Donald Trump’s grand plan for a US strategic Bitcoin reserve, according to data from Farside Investors. 🤷♂️
The exodus of funds suggests that institutional investors are skeptical about Bitcoin (BTC) exposure following Trump’s March 6 executive order. The order, which established a national Bitcoin reserve but curiously did not mandate the government to purchase Bitcoin, left many traders feeling shortchanged. 🤷♀️
“While [Trump’s executive order] acknowledges crypto’s role in global finance, the lack of fresh purchases disappointed markets,” Alvin Kan, chief operating officer of Bitget Wallet, told CryptoMoon. 🤔
Nuanced Announcement
On March 6, Trump signed an executive order creating a strategic Bitcoin reserve and, in a separate move, a digital asset stockpile to hold other cryptocurrencies. 📜
These reserves will initially consist of assets seized by law enforcement and other legal proceedings. 🕵️♂️
The order instructs officials to “develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.”
“This limited scope fell short of market expectations and resulted in considerable disappointment,” Temujin Louie, CEO of Wanchain, a crosschain interoperability protocol, told CryptoMoon. 😞
However, Trump’s “order opens the possibility of acquiring additional Bitcoin as well, as long as the acquisitions don’t cost taxpayers,” Bryan Armour, director of passive strategies research at Morningstar, told CryptoMoon. 🤞
“That could introduce a new buyer to the Bitcoin ecosystem.”
Market Reaction
Bitcoin’s spot price took a nosedive, dropping more than 2% on March 7, according to data from Google Finance. 📉
Meanwhile, data from the CME, the US’ largest derivatives exchange, shows declines of more than 2% across most of Bitcoin’s forward curve, which comprises futures contracts expiring at staggered dates. 📉
Futures are standardized contracts representing an agreement to buy or sell an asset at a particular future date. 📝
Even without the US government actively buying up Bitcoin, the “US Strategic Bitcoin Reserve means… Other countries will buy bitcoin… [and] Financial institutions have no excuse” not to add BTC allocations, Ryan Rasmussen, asset manager Bitwise’s head of research, said in an X post. 🌍
The sell-off is “a simple buy the rumor, sell the news event,” Austin Arnold, co-founder of Altcoin Daily, told CryptoMoon. “Long term, this is bullish.” 📈
Read More
- PSP PREDICTION. PSP cryptocurrency
- NYM PREDICTION. NYM cryptocurrency
- IP PREDICTION. IP cryptocurrency
- EUR IDR PREDICTION
- RLC PREDICTION. RLC cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- XRD PREDICTION. XRD cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
- EUR INR PREDICTION
- COW PREDICTION. COW cryptocurrency
2025-03-08 05:35