Spot Bitcoin ETFs Experience Outflows

Spot Bitcoin ETFs in the U.S. experienced a shift back to outflows on March 3, attributed to a retracement in Bitcoin’s gains. This shift was fueled by a risk-off sentiment due to trade tensions and skepticism about a proposed U.S. crypto reserve fund.

According to data from SoSoValue, the twelve spot Bitcoin ETFs resumed their outflow trend on Monday, with $74.19 million exiting these funds, following a previous day’s net inflow of $94.34 million.

BlackRock’s IBIT led the outflows for the third consecutive day, totaling $77.97 million in net redemptions, while Grayscale’s GBTC continued to experience outflows, with investors withdrawing $54.39 million.

In contrast, ARK and 21Shares’ ARKB bucked the trend, witnessing $58.18 million in net inflows. The other nine BTC ETFs remained inactive on that day.

The total daily trading volume for these investment products was $5.99 billion on March 3, with total net inflows amounting to $36.97 billion since their launch.

Meanwhile, the nine Ethereum ETFs saw their eighth consecutive day of outflows, with $12.10 million exiting the funds. BlackRock’s ETHA led these outflows, with $16.06 million withdrawn, though Bitwise’s ETHW fund had $3.96 million in inflows, offsetting some loss.

These substantial outflows corresponded with a risk-off sentiment following U.S. President Donald Trump’s announcement of a 25% tariff on Canada and Mexico, which began on March 4. The tariffs diminished hopes for a resolution that could relieve trade tensions, prompting statements of retaliation from both countries. Additionally, a 10% tariff on Chinese imports will also take effect on the same day.

Concerns are further raised by Trump’s proposal to create a U.S. Crypto Strategic Reserve, comprising various crypto assets, including Bitcoin and Ethereum, aiming to make the U.S. the “Crypto Capital of the World.” However, this has been met with skepticism from some in the crypto community, who argue that it contradicts Bitcoin’s decentralization principle and fear government intervention.

Bitcoin (BTC), which rose 11% to a high of $94,770 on March 3, retracted by 9.5% to trade at $84,011 as of the report’s publishing, reflecting the investors’ risk-off stance amid increasing trade conflicts and doubts about the strategic reserve feasibility. Ethereum (ETH) also declined by 13.8%, settling at $2,098.

Commenting on Bitcoin’s recent volatility, Matt Mena, crypto research strategist at 21Shares, noted that market reactions stem from “renewed fears of inflation and economic uncertainty,” though he believes the selloff may be an overreaction. He anticipates that Bitcoin could stabilize as trading resumes, suggesting that the recent price swings might set the stage for long-term growth and better financial integration despite short-term macroeconomic fluctuations.

Read more: Trump’s cryptocurrency reserve proposal ‘lacks details’: pro