Bitcoin ETFs See $800 Million Outflow as Institutional Interest Wanes

In the past week, US-based Bitcoin ETFs have experienced a significant net outflow of approximately $800 million. This trend reflects a growing shift in the sentiment and appetite of institutional investors, particularly in the United States. The net outflow marks the fourth consecutive week of withdrawals, indicating a sustained period of investor disinterest in these crypto-based financial products.

On Friday, March 7, the US Bitcoin ETF market posted a daily net outflow of roughly $409 million, marking the fifth consecutive day of withdrawals. Ark & 21 Shares Bitcoin ETF (ARKB) saw the largest volume of withdrawals, with over $160 million exiting the fund. Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely with net outflows of approximately $155 million. BlackRock’s Bitcoin Trust (IBIT), the largest Bitcoin ETF by net assets, declined in net value by $39.85 million. Grayscale’s Bitcoin Trust (GBTC) and Bitwise’s BTC fund (BITB) also experienced significant outflows, with total withdrawals of roughly $36.5 million and $18.6 million, respectively.

Interestingly, VanEck’s Bitcoin fund (HODL) was the only US-based Bitcoin ETF that recorded a net inflow on Friday, adding about $617,500 in value. This single-day performance marked the fifth straight day of net outflows for the Bitcoin ETFs, which have yet to record an inflow day in March. The last net daily inflow was on February 28.

The $409 million single-day withdrawal put the Bitcoin ETFs’ weekly performance at a net outflow of $799.9 million in the past week. This represents the fourth consecutive week of net outflows for the crypto exchange-traded funds, making it the second-highest ever recorded.

The performance of Bitcoin ETFs in recent weeks mirrors the sluggish price action of Bitcoin. Despite a somewhat improving crypto climate, Bitcoin has been unable to sustain any positive momentum. As of the latest data, the premier cryptocurrency is valued at around $86,100, reflecting an over 1% price decline in the past 24 hours. On the weekly timeframe, however, the Bitcoin price is up by more than 2%.