Bitcoin ETFs record fourth consecutive week of outflows, amid macroeconomic concerns
Weekly flows for spot Bitcoin ETFs remained adverse for the fourth consecutive week as macroeconomic components continued to weigh closely on investor sentiment.
Based on data from SoSoValue, the 12 spot Bitcoin ETFs recorded one other week of outflows from March 3-5, with almost $800 million exiting the funds. This follows a document outflow week that noticed over $2.61 billion in redemptions, extending the adverse stream streak to 4 consecutive weeks with whole internet outflows exceeding $4.5 billion.
Notably, Bitcoin ETFs recorded internet adverse flows all through final week, beginning with $74.19 million on Monday, adopted by $143.43 million, $38.3 million, $134.26 million, and culminating within the largest outflow of $409 million on Friday.
On the ultimate day of the week, ARK and 21Shares’ ARKB led the outflows with $160.03 million, adopted intently by Constancy’s FBTC, which noticed $154.89 million withdrawn by buyers. Different main ETF issuers, together with BlackRock’s IBIT, Grayscale’s GBTC, and Bitwise’s BITB, additionally skilled outflows of $39.85 million, $36.46 million, and $18.6 million, respectively. VanEck’s HODL was the one fund to buck the pattern, recording a modest influx of $619.55K.
In the meantime, the 9 spot Ethereum funds additionally reported two consecutive weeks of adverse flows, with $455 million exiting the funds, reflecting broader bearish sentiment within the crypto market.
Regardless of widespread anticipation that the White Home Crypto Summit might present a lift to the market, Bitcoin ETFs continued their downward pattern. Analysts attribute this decline to ongoing macroeconomic considerations, notably President Donald Trump’s trade tariffs and general financial uncertainty, which look like shaking investor confidence in digital property.
Some consultants recommend that strategic market shifts are additionally contributing to the sell-off. One prevailing concept is that hedge funds have been capitalizing on low-risk arbitrage trades between Bitcoin spot ETFs and CME futures. As these trades unwind, liquidity is drying up, resulting in elevated promoting strain and exacerbating ETF outflows.
One other issue influencing Bitcoin’s current worth swings is Trump’s announcement of the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile. Whereas many merchants anticipated the Crypto Summit to be a bullish occasion, Bitcoin’s (BTC) worth as a substitute dropped from $90,000 to $85,000 following the signing of the chief order.
Based on Kadan Stadelmann, CTO of Komodo, Bitcoin ETFs are experiencing main outflows regardless of the creation of the Strategic Bitcoin Reserve on account of a basic case of “purchase the rumor, promote the information.” In such eventualities, property sometimes rise in anticipation of an occasion however decline as soon as it materializes.
Stadelmann famous that hypothesis in regards to the Strategic Bitcoin Reserve started in July 2024 when Trump first talked about the initiative. By the point the official announcement was made throughout Thursday’s Crypto Summit, the market had already priced it in, resulting in a sell-off.
He added that in these conditions, “people who find themselves much less knowledgeable, related, and monied typically purchase the information and lose cash.” Moreover, the summit occurred throughout a difficult time for the market, with considerations over commerce tariffs compounding present worries about inflation, a slowing actual property market, weak shopper spending, and declining financial savings.
