Bitcoin ETFs Face Record Outflows

CRYPTO
Bitcoin ETFs Face Record Outflows

Bitcoin exchange-traded funds (ETFs) in the U.S. have experienced record daily net outflows as Bitcoin struggles to maintain momentum above $90,000. On February 25, the 11 spot Bitcoin ETFs saw a combined net outflow of $937.9 million, marking the sixth consecutive day of outflows, according to CoinGlass data.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the withdrawals, losing $344.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) with $164.4 million in outflows. Grayscale’s funds also saw significant exits, with $151.9 million lost between its Bitcoin Trust (GBTC) and Bitcoin Mini Trust ETF (BTC).

In total, February has seen over $2.4 billion in net outflows from these ETFs, with only four days of inflows recorded. Analysts like BitMEX co-founder Arthur Hayes suggest that hedge funds, rather than long-term investors, are behind these ETF movements, engaging in arbitrage strategies. Hayes predicts Bitcoin could drop to $70,000 if ETF outflows continue at this pace.

FINANCE
London Offices Face $43B Upgrades

London’s office market faces a $43 billion challenge to upgrade aging spaces, preventing millions of square meters from becoming obsolete. As businesses ramp up return-to-office policies, the demand for quality office space is surging, yet supply remains tight. According to Jones Lang LaSalle (JLL), London’s West End has a record-low vacancy rate of just 1.7%, highlighting the urgent need for more commercial real estate.

Several factors are driving this crisis. New office construction has been slow, with projects since 2020 accounting for less than 15% of the market. Meanwhile, over 9 million square meters of existing office space require major upgrades to meet modern standards.

Many firms downsized during the pandemic but are now realizing they lack enough space to accommodate returning employees. Companies are addressing this by sub-leasing offices or investing in flexible workspaces. As hybrid work structures stabilize, businesses are reentering the market, searching for high-quality yet affordable office solutions.

TECH
Tesla Eyes India Market Entry

Tesla is preparing to enter the Indian market, following a meeting between CEO Elon Musk and Prime Minister Narendra Modi. The company is reportedly hiring staff and scouting showroom locations as India aims to attract Tesla through a new EV tariff policy. The policy reduces import duties on electric vehicles priced above $35,000 from 70% to 15%, provided manufacturers invest at least $500 million and commit to local production.

While this move aligns with India’s goal of becoming a global manufacturing hub, analysts remain skeptical. Tesla’s vehicles, priced around $40,000, would be significantly more expensive than most Indian models, limiting their market appeal. Additionally, Tesla would need to establish a manufacturing base within three years and reach 50% domestic value addition in five years—requirements that might be premature given its price points.

Market experts predict Tesla will initially export vehicles to test demand rather than make immediate manufacturing commitments. Some reports suggest Tesla may push for further tariff reductions before finalizing investment plans. However, geopolitical challenges remain, particularly with the Trump administration voicing concerns over Tesla manufacturing in India.

Despite these obstacles, India presents a long-term opportunity. The country’s EV market is growing, with projections estimating one million annual passenger BEV sales by 2030. While Tesla’s entry may be slow and measured, securing a foothold in India could help the company expand beyond its competitive battles with Chinese automakers like BYD.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.