The recent slowdown in Bitcoin ETF selling has caught the attention of analysts, who are attributing the shift in market dynamics to factors other than President Donald Trump’s strategic crypto reserve plan. According to a report by Denis Omelchenko on March 3, 2025, the selling pressure on spot Bitcoin exchange-traded funds has eased, but not necessarily due to Trump’s recent statement on establishing a national crypto reserve.
Analysts at Matrixport suggest that hedge funds may have triggered the sell-off by unwinding basis trades, which aligns with the significant $8 billion drop in CME open interest since the December 2024 FOMC meeting. This drop accounted for over 20% of total ETF inflows, indicating a significant impact on the market.
The analysts further explained that the selling pressure may have been tied to the February futures expiry, which has now passed. With this overhang removed, ETF selling by hedge funds could ease, allowing them to reevaluate arbitrage spreads heading into late March. This suggests that the recent slowdown in Bitcoin ETF selling is a result of shifting market dynamics and hedge fund activities, rather than Trump’s crypto reserve plan.
Despite the uncertainty surrounding how long this pause in selling pressure will last, Bitcoin and altcoins experienced a surge in prices 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, Ethereum, XRP, Solana, and Cardano.
Following Trump’s announcement, Bitcoin rose by 8%, breaking $93,000, while Ethereum saw an 11% jump. Cardano experienced a significant 66% surge, with Solana and XRP gaining 20% and 28%, respectively. These gains, however, were modest compared to the overall market performance.
Despite the rally in prices, the Crypto Fear & Greed Index remains in “Fear” territory at 33, indicating a level of caution among investors. The market continues to be influenced by various factors, including regulatory developments and geopolitical events.
Overall, the recent developments in the Bitcoin ETF market highlight the complex interplay of factors shaping the cryptocurrency landscape. As analysts continue to monitor market trends and investor sentiment, the future trajectory of Bitcoin and other cryptocurrencies remains uncertain.