U.S. exchange-traded Bitcoin funds recorded net outflows exceeding $1.6 billion during the first two weeks of March, amid escalating U.S. trade tensions and increasing uncertainty in the markets.
According to SoSoValue data, 12 Bitcoin exchange-traded funds experienced weekly outflows of $799.39 million and $870.39 million in the first and second weeks of March, respectively, raising total outflows to $1.67 billion during this period.
Continuous decline for five weeks erases billions of dollars
This wave of withdrawals marks the fifth consecutive week of outflows, resulting in more than $5.4 billion being wiped from exchange-traded Bitcoin funds. Despite a strong start for these funds in 2025, attracting investments exceeding $5 billion, investors have begun to reduce their positions at an increasing pace.
Fidelity and BlackRock lead major withdrawals
According to Farside data, most of the withdrawals in the past two weeks came from Fidelity's FBTC fund, which recorded outflows of $508.4 million. BlackRock's IBIT fund also saw outflows of $467.7 million.
Meanwhile, Grayscale's GBTC funds and ARKB from ARK 21Shares recorded significant losses of $289 million and $231.8 million, respectively.
Direct impacts on Bitcoin price
These outflows have contributed to pressure on Bitcoin's price, which saw a 14% decline over the past month, briefly reaching a low of $77,000. This led to a 21.7% decrease in the total net assets of spot Bitcoin exchange-traded funds, bringing it down to $93.25 billion according to SoSoValue estimates.
Expert insights: What does this mean for the future of Bitcoin?
Fakhul Mia, director of GoMining Institutional, sees Bitcoin's drop below $80,000 for the second time this year as reinforcing its status as a 'high-risk asset.' He explained that the current economic environment complicates matters, as high consumer price index readings keep the Federal Reserve's stance hawkish, increasing borrowing costs and reducing liquidity in the markets.
In turn, Georgi Verbitsky, founder of TYMIO, pointed out that the slowdown in Bitcoin fund inflows indicates that the recent sell-off was a reaction to previous market volatility rather than the beginning of a long-term sell-off. Meanwhile, Jess Holgerif, CEO of Rion, believes that the proposed Bitcoin legislation from Senator Loomis could be a potential catalyst for a market reversal, but it still depends on how much the global economic situation improves and the resolution of ongoing trade disputes.
