Nearly all United States spot Bitcoin exchange-traded funds (ETFs) faced a rough March, recording substantial net outflows amid predictions of a prolonged bearish trend for Bitcoin. According to data from Farside Investors, net outflows from spot Bitcoin ETFs surpassed $1.6 billion in the first 17 days of March, while inflows stood at just $351 million, resulting in a net outflow of nearly $1.3 billion.
BlackRock and Fidelity Among the Hardest Hit
Among the hardest-hit funds was BlackRock’s iShares Bitcoin Trust ETF (IBIT), which recorded outflows of $552 million and only $84.6 million in inflows. Similarly, Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw $517 million in outflows, with inflows totaling just $136.5 million.
Grayscale’s Bitcoin Trust ETF (GBTC) also struggled, reporting over $200 million in outflows and zero inflows for the month. However, there was a lone bright spot for Grayscale: its newly launched Bitcoin Mini Trust ETF (BTC), which defied the trend with $55 million in net inflows and no outflows in March.
Ether ETFs Also See Red
The downturn wasn’t limited to Bitcoin ETFs. Ether-based investment products fared similarly poorly. BlackRock’s iShares Ethereum Trust ETF (ETHA) suffered $126 million in outflows without a single dollar in inflows for the month. Fidelity’s Ethereum Fund (FETH) followed suit, losing $73 million, offset by just $21 million in inflows.
March 4 was the only positive day for Ether ETFs, which saw $14 million in inflows, but the rest of the month was marked by consistent outflows, culminating in over $300 million in net losses.
Bearish Sentiment Expected to Linger
Market analysts are increasingly forecasting a bearish Bitcoin trend lasting up to 12 months, contributing to the widespread ETF outflows. With investor sentiment cooling and price volatility persisting, many are shifting to the sidelines, bracing for potential long-term declines in crypto markets.
