Data from Farside Investors shows that Bitcoin ETFs experienced a $370 million net outflow on March 7, as investors react to Donald Trump’s plans for a US Strategic Bitcoin Reserve.
You can also find out more about the following: outflows Institutional investors have expressed concern about Bitcoin.BTC) exposure after Trump’s March 6 executive order — which created a national Bitcoin reserve but didn’t instruct the government to buy Bitcoin — disappointed traders.
“While [Trump’s executive order] acknowledges crypto’s role in global finance, the lack of fresh purchases disappointed markets,” Alvin Kan is the chief operating officer at Bitget Wallet. He spoke to Cointelegraph.
Source: Ryan Rasmussen
Related: US Bitcoin reserve ups volatility, futures recoil
An announcement with nuance
Trump signed an agreement on March 6. executive order Creating a strategic Bitcoin reserve And, separately, an asset pool to be used for other cryptocurrencies.
Both will initially consist of assets acquired through law enforcement or other legal actions.
Officials are asked to comply with the order. “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 Louise, CEO at Wanchain (a protocol for cross-chain interoperability), told Cointelegraph.
However, Trump’s “order opens the possibility of acquiring additional Bitcoin as well, as long as the acquisitions don’t cost taxpayers,” Bryan Armour is the director of research for passive strategies at Morningstar. He spoke to Cointelegraph.
“That could introduce a new buyer to the Bitcoin ecosystem.”
Market Reaction
Google Finance’s data show that Bitcoin’s spot value dropped by over 2% in the week ending March 7.
CME data, the largest US derivatives exchange shows that the forward curve of Bitcoin, which includes contracts with staggered expiration dates, has declined by more than 2 percent.
Futures contracts are standard agreements that represent an agreement to purchase or sell a specific asset on a future date.
Bitcoins can be bought by US authorities without them actively doing so. “US Strategic Bitcoin Reserve means… Other countries will buy bitcoin… [and] Financial institutions have no excuse” Ryan Rasmussen’s research head at Bitwise, Asset Manager Bitwise, stated in an X post.
It is time to sell. “a simple buy the rumor, sell the news event,” Austin Arnold is the founder of Altcoin Daily and told Cointelegraph. “Long term, this is bullish.”
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
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Source: cointelegraph.com
