ETFs See Heavy Selling as Crypto Market Slumps
According to SoSoValue data, there were $409 million in withdrawals from Bitcoin ETFs on March 7, which was a huge outflow. The sell-off occurred during the White House’s cryptocurrency meeting when the price of Bitcoin fell below $86,000.
The ARK 21Shares Bitcoin ETF experienced the biggest withdrawal, totaling $160 million. In the meantime, $39.85 million was pulled out of BlackRock’s IBIT ETF, which added to the market’s overall decline. Selling pressure also affected Ethereum ETFs, as $23 million was taken out.
As a result of these liquidations, the whole market capitalization of cryptocurrencies fell 3.35% to $1.7 trillion by March 8. But within a day, trading volume jumped 15.13% to $49.35 billion. Bitcoin‘s circulation supply was 19.83 million BTC, and its fully diluted worth (FDV) was $1.8 trillion.
Regulatory Uncertainty Looms as White House Hosts Crypto Leaders
The White House Crypto Summit brought together important industry experts to talk about the U.S. government’s stance on digital assets despite the market collapse. The Winklevoss twins, Coinbase cofounder Brian Armstrong, Ripple CEO Brad Garlinghouse, and MicroStrategy CEO Michael Saylor were among those present in the State Dining Room meeting.
Treasury Secretary Scott Bessent emphasized the government’s intention to include stablecoins in the financial system while restating its commitment to upholding the supremacy of the US dollar. The recently suggested strategic crypto reserve, which might encompass assets other than Bitcoin, such as XRP, could indicate a possible change in the government’s approach to digital assets. As investors consider the summit’s ramifications and regulatory uncertainties, market sentiment is still pessimistic despite these developments.
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