Bitcoin exchange-traded funds (ETFs) have been facing heavy outflows, with investors pulling billions from the market in recent weeks. Recent data shows that U.S. Bitcoin spot ETFs recorded over $900 million in net outflows in just one week. Over the past five weeks, the total outflows have reached $5.5 billion, showing a shift in investor sentiment.
Investors Withdraw $5.5 Billion From Market
Bitcoin ETFs had a strong start, but things have changed in recent weeks. The funds have now seen their longest period of outflows since launching in January last year. Many investors are choosing to exit the market due to growing uncertainty.
One key reason behind this trend is the recent policies of U.S. President Donald Trump. While he has shown support for crypto, investors seem more concerned about his aggressive trade policies and potential economic uncertainty.
This has led to a broader sell-off in riskier assets, including Bitcoin and other cryptocurrencies.
Biggest Bitcoin ETFs Hit Hard
Among the 12 Bitcoin ETFs in the U.S., BlackRock’s IBIT fund saw the largest withdrawals, with net outflows of $338.1 million in just one week. Fidelity’s FBTC followed closely, losing $307.4 million.
Other funds, including Ark’s ARKB, Invesco’s BTCO, Franklin Templeton’s EZBC, and WisdomTree’s BTCW, also recorded losses ranging from $33 million to $81 million.
On the other hand, Grayscale’s GBTC was the only fund to record net inflows, adding $5.5 million. Meanwhile, Bitwise’s BITB, Valkyrie’s BRRR, and VanEck’s HODL saw minor outflows of less than $4 million each.
Bitcoin Price Struggles to Recover
Meanwhile, Bitcoin price itself has been under pressure, trading below $84,000 and showing little movement over the past 24 hours. However, the larger trend remains bearish, with Bitcoin down nearly 17% since late January.
Even though, Ethereum has also suffered trading below $2000 and hitting three-month lows amid weak market sentiment.
What’s Next for Crypto ETFs?
Despite these challenges, asset managers continue to push for new crypto ETFs. Some firms have applied for funds based on cryptocurrencies like XRP, Litecoin, Cardano, Polkadot, and Solana. If approved by the U.S. Securities and Exchange Commission (SEC), these funds could help bring fresh interest into the crypto market.
Although Bitcoin ETFs are facing difficulties now, positive regulatory news or a shift in investor sentiment could lead to a strong recovery soon.
