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crypto.news 2025-03-03 09:44:40

Bitcoin ETF selling cools off, but not thanks to Trump’s strategic crypto reserve, analysts say

The recent slowdown in Bitcoin ETF selling isn’t driven by Trump’s crypto reserve plan but rather shifting market dynamics. Spot Bitcoin exchange-traded funds saw their largest outflows since launching in January 2024. For now, the selling pressure may be easing, though not necessarily due to President Donald Trump ‘s statement on a strategic crypto reserve, but seemingly because hedge funds unwound basis trades, analysts at Matrixport suggest. https://twitter.com/Matrixport_EN/status/1896460763293986916/ In an X post on March 3, the analysts suggested that hedge funds likely triggered the sell-off by unwinding basis trades, which aligns with the $8 billion drop in CME open interest since the December 2024 FOMC meeting, accounting for over 20% of total ETF inflows. “The selling pressure may have been tied to the February futures expiry, which is now behind us. With this overhang removed, ETF selling by hedge funds could ease, allowing them to reevaluate arbitrage spreads heading into late March.” Matrixport You might also like: Crypto market bleeds as Trump’s trade war returns – How bad can this get? While it’s unclear how long the pause in selling pressure will last, Bitcoin and altcoins quickly surged after Trump reaffirmed his commitment to making the U.S. “the Crypto Capital of the World.” His new executive order directs officials to establish a national crypto reserve, including Bitcoin ( BTC ), Ethereum ( ETH ), and — to many people’s surprise — XRP ( XRP ), Solana ( SOL ), and Cardano ( ADA ). As Bitcoin rose 8%, breaking $93,000, Ethereum followed with an 11% jump. Yet, these gains were modest though compared to Cardano’s 66% surge, while Solana and XRP gained 20% and 28%, respectively. Despite the rally, the Crypto Fear & Greed Index remains in “Fear” territory at 33, as crypto.news reported earlier. Read more: From Trump tokens to LIBRA lows: Meme coin circus rolls on, bolstered by recent SEC ruling

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