U.S. Bitcoin ETF Outflows Surpass $1.6 Billion in March

U.S. spot Bitcoin exchange-traded funds (ETFs) faced significant net outflows exceeding $1.6 billion during the initial two weeks of March due to rising trade tensions and market uncertainty.

According to data from SoSoValue, the 12 spot Bitcoin (BTC) ETFs experienced weekly outflows of $799.39 million and $870.39 million, cumulatively totaling $1.67 billion.

These withdrawals represent the fifth consecutive week of net outflows, erasing over $5.4 billion from these ETFs after they had previously attracted over $5 billion in investments early in 2025.

Data from Farside indicates that Fidelity’s FBTC led the outflows, with $508.4 million withdrawn, closely followed by BlackRock’s IBIT at $467.7 million. Additionally, Grayscale’s GBTC and ARK 21Shares’ ARKB lost around $289 million and $231.8 million, respectively.

Other Bitcoin ETFs such as Invesco Galaxy’s BTCO, Franklin Templeton’s EZBC, Bitwise’s BITB, and WisdomTree’s BTCW saw moderate withdrawals ranging from $51 million to $108 million. Meanwhile, Valkyrie’s BRRR, Grayscale’s mini Bitcoin Trust, and VanEck’s HODL reported minor outflows under $15 million.

Bloomberg analysts noted that Bitcoin ETFs still retained 95% of their capital despite declining inflows. The recent outflows correlate with Bitcoin’s 14% price drop over the past month, with the currency briefly reaching lows of $77,000. This downturn has prompted a cautious approach from institutional investors, resulting in a 21.7% decline in total net assets for Bitcoin spot ETFs, which now sit at $93.25 billion, according to SoSoValue.

Analysts attribute Bitcoin’s recent slump to global economic concerns, primarily related to Trump’s trade tariffs and increasing overall uncertainty in the market. As investors become cautious, traditional assets like gold are gaining favor, with gold ETFs surpassing Bitcoin ETFs in assets under management.

Insights from Experts

Fakhul Miah, director of GoMining Institutional, commented on the bearish trend, stating that Bitcoin’s dip below $80,000 has solidified its perception as a “high-risk asset.” He remarked that high consumer price index (CPI) readings are influencing the Federal Reserve’s hawkish approach, keeping borrowing costs elevated, which negatively impacts speculative assets like Bitcoin.

Trade tensions and economic instability further undermine investor confidence, heightening the likelihood of additional sell-offs. Conversely, Georgii Verbitskii, founder of TYMIO, observed that ETF outflows had slowed compared to the significant selling pressure experienced earlier in March, suggesting the recent downturn is more reactive than indicative of a long-term trend. He highlighted a fragile market equilibrium, noting the potential for ETF inflows to become positive if the Nasdaq stabilizes.

Jess Houlgrave, CEO of Reown, pointed out that the forthcoming Bitcoin Act proposed by Lumis might signal a turning point for the market, although overall sentiment will depend on resolving ongoing tariff conflicts.

Conclusion

As we move forward, analysts remain cautious yet hopeful, monitoring market conditions that may lead to a reversal in Bitcoin ETF inflows, especially if supportive economic developments occur.