iShares Bitcoin Trust ETF dropped 17% in February due to Bitcoin's price plunge

From Nasdaq: 2025-03-08 14:00:00

In February, shares of the iShares Bitcoin Trust ETF (NASDAQ: IBIT) dropped 17% as the BlackRock exchange-traded fund closely followed Bitcoin’s price. The cryptocurrency, despite hopes of being a safe haven during economic uncertainty, behaved more like a volatile tech stock. President Trump’s promises to boost the industry and create a Strategic Bitcoin Reserve did not prevent Bitcoin’s plunge alongside other stocks due to tariff fears and looming recession concerns. The government’s plan to retain seized bitcoins for the reserve, rather than purchasing more, disappointed some investors hoping for increased demand.

Investors fled risk assets in late February, including Bitcoin, due to tariff threats and potential federal layoffs under the Department of Government Efficiency program. Despite the administration’s implementation of tariffs and subsequent delays, consumer sentiment readings remained negative. The government’s announcement of creating a Strategic Bitcoin Reserve through retaining seized bitcoins, rather than new purchases, left Bitcoin near year-to-date lows. While some hoped for increased government demand, the announcement did not meet those expectations.

The Motley Fool Stock Advisor team did not include iShares Bitcoin Trust in its list of top 10 stocks to buy now, which have historically yielded significant returns. The service provides guidance on building portfolios, regular analyst updates, and two new stock picks monthly. Stock Advisor’s track record has outperformed the S&P 500 since 2002. Despite the potential for high returns, investing in iShares Bitcoin Trust may not align with the team’s top stock picks for future growth.



Read more at Nasdaq: Why the iShares Bitcoin Trust ETF Plunged in February