Bitcoin ETFs Face $1.6 Billion Outflow Amid Uncertainty

U.S. spot Bitcoin ETFs experienced withdrawal of $1.67 billion during the opening two weeks of March due to expanding market uncertainties and increased U.S.-trade conflict.

Reports from SoSoValue indicate that investors withdrew $799.39 million from all 12 U.S.-based Bitcoin spot ETFs during the first week of March then moved $870.39 million more out during the following week.

Funds from ETFs keep leaving the market every week without pause since the sell-off started and $5.4 billion has exited since the decline began. During the early phase of 2025 Bitcoin ETFs registered notable success as they collected $5 billion in new financing. Due to current economic challenges institutional buyers are reducing their digital asset holdings.

Bitcoin Price Drop Triggers ETF Capital Exits

FBTC at Fidelity suffered the most from these moves as $508.4 million flowed out. IBIT reacted to this wave of capital exits by losing $467.7 million to its investors. Both Grayscale and ARK 21Shares experienced substantial funds leaving their Bitcoin-related investment products totaling $289 million and $231.8 million.

Several ETFs linked with Invesco Galaxy (BTCO), Franklin Templeton (EZBC), Bitwise (BITB), and WisdomTree (BTCW) each had $51 million to $108 million withdrawn from their funds. The Bitcoin trust funds BRRR, mini Bitcoin Trust, and HODL took smaller cash outflows totaling together a minimum of $15 million.

Bitcoin ETF withdrawals took place at the same time as Bitcoin price decreased 14% and dipped to $77,000 levels. Bitcoin ETF investment funds lost 21.7% of their total net value which fell to $93.25 billion because of market decline.

Bitcoin struggles in price due to market analysts who link its performance to wider economic risks related to former President Donald Trump”s proposed trade tariffs. High consumer price index numbers push the Federal Reserve to maintain strict banking standards and maintain high interest rates to limit market funds.

Gold ETFs Gain as Bitcoin Faces Market Pressure

The current situation makes investments more challenging according to GoMining Institutional”s Fakhul Miah. Increased global inflation and stricter government interest rates affect Bitcoin prices due to their financial market sensitivity.

When investors want stability they prefer investing in gold ETFs more than Bitcoin ETFs which now hold larger asset value. The recent shift by investors toward conventional shelter assets shows up as a worldwide market pattern during crypto volatility.

Several specialists assert that the major market exit phase has reached its peak. Georgii Verbitskii from TYMIO stated that recent Bitcoin ETF outflows are small since sales dropped significantly in February and March. The market needs to stay stable and the stock index needs to calm down before Bitcoin ETF investments return to the market.

Traditional Bitcoin ETFs stay depressed but market conditions indicate emerging optimism. Jess Houlgrave of Reown sees Senator Cynthia Lummis” Bitcoin Act as an opportunity to interest investors and restore trust in the market. She indicates that a market expansion can only happen through settlements of current international trading conflicts and behind it all improving investor mood.

People who buy Bitcoin must observe market indicators to see if the instability will end soon. Time will show how well Bitcoin ETFs perform next because it depends on market trends and investor belief.