U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net outflows exceeding $1.6 billion in the first half of March, as escalating U.S. trade tensions and broader economic uncertainty weighed on investor sentiment.
Steady Outflows Amid Market Downturn
According to data from SoSoValue, the 12 spot Bitcoin ETFs experienced weekly outflows of $799.39 million and $870.39 million, bringing the total net withdrawals to $1.67 billion over two weeks. This marks the fifth consecutive week of net outflows, erasing over $5.4 billion from these funds.
Despite an initial surge in inflows earlier in 2025, these Bitcoin ETFs are now seeing significant capital flight. According to Farside data, Fidelity’s FBTC saw the largest withdrawals, with $508.4 million in net outflows. BlackRock’s IBIT followed closely behind, with investors pulling out $467.7 million.
Other major losses came from Grayscale’s GBTC ($289 million) and ARK 21Shares’ ARKB ($231.8 million). Meanwhile, Invesco Galaxy’s BTCO, Franklin Templeton’s EZBC, Bitwise’s BITB, and WisdomTree’s BTCW recorded moderate outflows ranging from $51 million to $108 million. Valkyrie’s BRRR, Grayscale’s mini Bitcoin Trust, and VanEck’s HODL saw only minor withdrawals, with outflows under $15 million.
Bitcoin’s Price Decline and Institutional Retreat
The sustained outflows appear closely tied to Bitcoin’s recent price slump. BTC has dropped 14% in the past month, briefly hitting lows of $77,000. This price volatility has made institutional investors more cautious, leading to a 21.7% drop in total net assets for Bitcoin spot ETFs, now valued at $93.25 billion, per SoSoValue.
Analysts point to broader economic concerns as the root cause of Bitcoin’s decline. Factors such as U.S. trade policy uncertainty and concerns over potential tariffs have contributed to risk-averse investor behavior. As a result, traditional safe-haven assets like gold have gained traction, with gold ETFs surpassing Bitcoin ETFs in total assets under management.
Expert Insights on Bitcoin ETF Outflows
Fakhul Miah, director of GoMining Institutional, attributed Bitcoin’s drop below $80,000 to its continued perception as a high-risk asset.
“The current environment presents additional complexities. Elevated consumer price index (CPI) readings have maintained the Federal Reserve’s hawkish stance, keeping borrowing costs high and reducing liquidity in the market. This dynamic continues to weigh on speculative assets like Bitcoin, which are highly sensitive to shifts in monetary policy.”
Georgii Verbitskii, founder of TYMIO, suggested that Bitcoin ETF outflows have been slowing down in recent days.
“[Last] Friday’s outflows were relatively minor compared to the heavier selling pressure in late February and early March.”
Verbitskii noted that the market remains in a “fragile equilibrium.” He believes that if the Nasdaq stabilizes and the VIX (volatility index) cools down, Bitcoin ETF inflows could turn positive by the end of the week.
Meanwhile, Jess Houlgrave, CEO of Reown, highlighted that a potential catalyst for Bitcoin’s recovery could be the Lumis Bitcoin Act, which is gaining traction. However, she warned that broader market sentiment will likely depend on the resolution of ongoing trade disputes.
Market Outlook
While Bitcoin ETFs have suffered significant outflows, the slowing pace of withdrawals hints at a possible stabilization. If macroeconomic conditions improve and institutional confidence returns, Bitcoin ETFs may see renewed inflows in the coming weeks. Investors are closely watching regulatory developments and broader market trends to gauge the next move for Bitcoin.
