US Bitcoin ETFs lose $1.14B in two weeks amid US-China trade tensions

US-based spot Bitcoin exchange-traded funds (ETFs) recorded their biggest-ever two-week outflow as investor sentiment was pressured by ongoing trade tensions between the US and China.

US spot Bitcoin ETFs recorded over $1.14 billion worth of cumulative net Bitcoin (BTC) outflows in the two weeks leading up to Feb. 21, Sosovalue data shows.

The sell-off marked the highest two-week period of withdrawals from Bitcoin ETFs since they began trading on Jan. 11, 2024.

The recent selling edged past the second-largest period of outflows in the two weeks leading up to June 21, 2024, when the Bitcoin ETFs saw $1.12 billion worth of outflows while Bitcoin’s price was trading at around $64,000.

ETF flows are a “great indicator” of Bitcoin sentiment among the world’s largest asset management firms, according to Marcin Kazmierczak, co-founder and chief operating officer of RedStone, a blockchain oracle solutions firm.

Still, the long-term purchasing patterns of Bitcoin ETFs provide a more accurate picture, Kazmierczak told Cointelegraph, adding:

“We’re looking at a monthly timeframe, which doesn’t provide the full picture. ETFs are generally considered long-term investment vehicles, so analyzing flows over a six-month or yearly period gives a more meaningful perspective.”

“When zooming out, we see that net flows have been overwhelmingly positive in the longer term,” he said.

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The record two-week sell-off from the Bitcoin ETFs may be largely attributed to ongoing trade tensions between the US and China after new import tariffs were announced. Investors are still waiting for US President Donald Trump’s meeting with Chinese President Xi Jinping, aimed at resolving trade tensions.