On March 7, Bitcoin exchange-traded funds (ETFs) experienced substantial outflows amounting to $409 million, as reported by SoSoValue.
The most significant withdrawal was from the ARK 21Shares Bitcoin ETF, which saw $160 million extracted. Additionally, BlackRock’s IBIT ETF encountered considerable outflows, losing $39.85 million.
In comparison, Ethereum ETFs dealt with more modest withdrawals, totaling $23 million on the same day. This selling pressure in the ETF sector aligned with a decrease in Bitcoin’s value, which fell below $86,000 coinciding with the White House cryptocurrency summit.
By March 8, the wider cryptocurrency market displayed the implications of these withdrawals, with the overall market capitalization reduced to $1.7 trillion, reflecting a 3.35% decrease.
Conversely, trading volume surged to $49.35 billion within 24 hours, indicating a 15.13% rise. The fully diluted valuation (FDV) of Bitcoin reached $1.8 trillion, accompanied by a volume-to-market cap ratio of 2.87%. The overall and circulating Bitcoin supply stayed at 19.83 million BTC, out of the maximum cap of 21 million BTC available.
Despite the executive order signed by the U.S. president to establish a strategic crypto reserve, market sentiment continued to remain low.
The White House convened a cryptocurrency summit on Friday, gathering key industry figures to deliberate on the administration’s strategy for a government-owned digital asset reserve.
Held in the State Dining Room, the event included prominent attendees like MicroStrategy CEO Michael Saylor, Coinbase co-founder Brian Armstrong, investors Cameron and Tyler Winklevoss, and Ripple CEO Brad Garlinghouse, among others.
Treasury Secretary Scott Bessent reaffirmed the U.S. commitment to the dollar as the global reserve currency, emphasizing plans to integrate stablecoins into the financial framework. The government’s cryptocurrency holdings might encompass assets beyond Bitcoin, including XRP.
