Bitcoin ETFs See 98% Drop in Net Inflows Amid Market Volatility
1min read Bitcoin ETFs experienced significant volatility in 2025, reflecting the complex dynamics of the cryptocurrency market amidst broader economic uncertainties. The year began with robust inflows, accumulating $5.7 billion by early February, but this momentum was abruptly reversed, leading to a massive sell-off that erased most of these gains. By the end of the year, net inflows stood at a mere $106 million, highlighting the market's volatility.
February was particularly challenging, with the largest monthly outflow of $3.5 billion and the highest weekly net outflow of $2.7 billion. However, signs of resilience emerged in March, as positive inflows resumed. By March 20, total net inflows reached over $600 million, indicating a shift in investor sentiment. This rebound was driven by asset managers such as Fidelity and ark Invest, who intensified their buying strategies and consolidated their positions in Bitcoin.
On March 17, ETFs recorded their highest single-day inflow in over a month, with the iShares Bitcoin Trust ETF (IBIT) leading the way with $172.1 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with $9.2 million. Despite this renewed interest, market performance remained uneven, with some ETFs recording no flows and others, like Grayscale Bitcoin Trust (GBTC), experiencing continued outflows.
Analysts remain divided on the future price direction of Bitcoin. While the cryptocurrency's price has trended downwards, depreciating by 12.1% over the last month, there is cautious optimism. Arthur Hayes expressed bullish sentiment, suggesting that Bitcoin may see a price rebound. This optimism is based on movements in his custom US bank credit supply index, which may indicate the end of selling pressure. Additionally, comparisons to gold suggest that Bitcoin might replicate similar recovery patterns observed in traditional precious metals.
The future for Bitcoin ETFs is precarious yet intriguing. While 2025 began with substantial outflows, recent inflows and bullish sentiments from key industry players hint at a potential market rebound. Investors are advised to monitor these developments closely, as the cryptocurrency landscape continues to evolve in response to broader economic factors.
