U.S. spot Bitcoin exchange-traded funds recorded over $1.6 billion in net outflows during the first two weeks of March amid escalating U.S. trade tensions and broader market uncertainty.
According to data from SoSoValue, the 12 spot Bitcoin (BTC) ETFs saw weekly outflows of $799.39 million and $870.39 million in the first two weeks of March, adding up to a total outflow of $1.67 billion over the period.
These outflows marked the fifth straight week of net withdrawals, wiping out over $5.4 billion from these ETFs. In contrast, these Bitcoin ETFs have previously pulled in over $5 billion in investments after a strong start to 2025.
According to data from Farside, most of the Bitcoin ETF withdrawals over the past two weeks came from Fidelity’s FBTC, which saw $508.4 million in net outflows. BlackRock’s IBIT wasn’t far behind, with investors pulling out $467.7 million.
Other major outflows came from Grayscale’s GBTC and ARK 21Shares’ ARKB, which lost around $289 million and $231.8 million, respectively.
Several other Bitcoin ETFs, including Invesco Galaxy’s BTCO, Franklin Templeton’s EZBC, Bitwise’s BITB, and WisdomTree’s BTCW, saw moderate outflows ranging from $51 million to $108 million.
Meanwhile, Valkyrie’s BRRR, Grayscale’s mini Bitcoin Trust, and VanEck’s HODL experienced only minor withdrawals, with outflows staying under $15 million.
The steady outflows from Bitcoin ETFs seem to be linked to Bitcoin’s recent price dip. Over the past month, BTC has dropped 14%, briefly hitting lows of $77,000. Institutional investors have been more cautious during this period, leading to a 21.7% drop in total net assets for Bitcoin spot ETFs, which now stand at $93.25 billion, according to SoSoValue.
Analysts say Bitcoin’s recent drop is due to broader economic worries, especially concerns over Trump’s trade tariffs and overall uncertainty in the market.
With investors playing it safe, traditional assets like gold are gaining traction. Gold ETFs, in particular, are seeing more interest and have now overtaken Bitcoin ETFs in total assets under management.
Experts weigh in
Commenting on the recent bearish trend in Bitcoin ETFs, Fakhul Miah, director of GoMining Institutional, told crypto.news that Bitcoin’s recent drop below $80,000 for the second time this year has reinforced its status 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.”
The expert also pointed out that trade tensions in North America and overall economic uncertainty are shaking investor confidence, making further sell-offs more likely.
Meanwhile, Georgii Verbitskii, founder of TYMIO, pointed out that Bitcoin ETF outflows have been slowing down, noting, “[last] Friday’s outflows were relatively minor compared to the heavier selling pressure in late February and early March.” This suggests that the recent sell-off was more of a reaction to past volatility rather than the start of a long-term exit.
He added that the market is in a “fragile equilibrium” right now. If the Nasdaq stabilizes and the VIX (volatility index) cools down, ETF inflows could turn positive by the end of the week.
Varbitskii concluded that the fading negative momentum hints that a reversal might be around the corner—“provided broader market conditions remain favorable.”
Meanwhile, Jess Houlgrave, CEO of Reown, believes that a potential trigger for a market reversal could be Lumis’ Bitcoin Act, which is drawing widespread attention. However, she suggests that improved sentiment across all markets may depend on the resolution of the tariff wars.
