Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded their third straight day of net outflows on March 5, with Valkyrie’s BRRR leading the declines.
Bitcoin ETF Outflows Continue
According to data from SoSoValue, 12 spot Bitcoin ETFs saw a total of $38.3 million in outflows on Wednesday. This extended the recent trend, following net redemptions of $74.19 million on Monday and $143.43 million on Tuesday.
Valkyrie’s BRRR bore the brunt of the withdrawals, losing $60.42 million in investor capital. Other ETFs also saw outflows, including Invesco Galaxy’s BTCO ($9.94 million) and Bitwise’s BITB ($6.87 million). However, BlackRock’s IBIT, the largest Bitcoin ETF by net assets, managed to counterbalance some of these outflows, attracting $38.93 million in new investments. Since its launch, IBIT’s total net inflows have now reached $39.66 billion. The remaining eight Bitcoin ETFs saw no significant capital movement on the day.
Overall, trading volume across all Bitcoin ETFs stood at $3.27 billion on March 5.
Ethereum ETFs See Renewed Outflows
The Ethereum ETF market also returned to outflows on March 5, reversing a brief period of inflows. A total of $63.32 million exited Ethereum ETFs, following $14.58 million in net inflows the previous day, which had momentarily halted an eight-day streak of withdrawals.
Grayscale’s ETHE accounted for the entire outflow, likely due to its higher fees compared to competing Ethereum investment products. The remaining Ethereum ETFs saw no inflows or outflows.
Impact of Trump’s Crypto Strategic Reserve Proposal
The ongoing outflows from Bitcoin and Ethereum ETFs appear to be linked to uncertainty surrounding former President Donald Trump’s proposed U.S. Crypto Strategic Reserve. While the plan aims to solidify the country’s role in the crypto market by holding Bitcoin and Ethereum as part of a national reserve, it has sparked debate within the crypto community. Many argue that such a move contradicts Bitcoin’s decentralized principles and could lead to greater government influence over a system designed to operate independently.
Initially, the announcement provided a boost to digital asset prices, but selling pressure soon followed. Despite this, Bitcoin has managed to recover, trading near $92,500, while the total crypto market cap remains above $3.1 trillion.
Market Outlook: Volatility Expected
Looking ahead, analysts predict continued market swings, driven by geopolitical tensions and trade uncertainties. Historical trends from Bitcoin’s volatility index suggest that March could be a turbulent month, with potential stabilization in April that might ease selling pressure. At the time of writing, Bitcoin was up 6.3% over the past day, trading at $92,710, while Ethereum climbed 5.9% to $2,299 per coin
