Bitcoin ETFs Break $1.67B Outflow Streak with $13.3M Inflow as BTC Approaches $85,000

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  • U.S. spot Bitcoin and Ether ETFs experienced over $1.67 billion in outflows during March, but halted the trend with a $13.3 million inflow on March 12.
  • Bitcoin ETFs saw positive inflows on two days in March, while Ethereum ETFs recorded inflows only once, bringing in $14.6 million on March 4.
  • Market analysts attribute the outflow trend to broader economic uncertainties, geopolitical tensions, and unmet expectations regarding Trump’s Strategic Bitcoin Reserve plan.

U.S. cryptocurrency markets witnessed a brief respite from significant outflows as Bitcoin ETFs attracted $13.3 million on March 12, ending a streak of withdrawals while Bitcoin’s price approached the $85,000 mark. This positive movement contrasts with the overall March performance, which saw more than $1.67 billion exit U.S. spot Bitcoin and Ether exchange-traded funds.

According to Farside Investors data, Bitcoin ETFs managed to secure modest inflows totaling $35.4 million across just two days in March through the 12th. The modest recovery comes amid continued investor caution in the cryptocurrency sector.

In contrast, spot Ethereum ETF products have struggled to attract capital, recording positive inflows only once during the month. On March 4, Ethereum ETFs brought in $14.6 million, as verified by Farside tracking data.

The $13.3 million inflow for Bitcoin ETFs on March 12 coincided with relatively low trading volume. Sosovalue reports that the total trading value that day reached $2.01 billion, marking the lowest daily activity since February 20. Three funds contributed to the positive flow: BlackRock‘s iShares Bitcoin Trust (IBIT), the ARK 21Shares Bitcoin ETF (ARKB), and the Grayscale Bitcoin Mini Trust ETF (BTC).

For Ethereum’s single day of positive inflows, contributions came from multiple issuers including Fidelity Ethereum Fund (FETH), Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini Trust (ETH).

Market analysts point to several factors driving the persistent outflows throughout most of March. The broader cryptocurrency market downturn, combined with macroeconomic uncertainties, has created a challenging environment for digital asset investments. Geopolitical tensions and ongoing trade disputes have further dampened investor sentiment.

Another factor potentially influencing investor behavior has been the perceived lack of concrete implementation regarding President Donald Trump‘s Strategic Bitcoin Reserve plan. Unfulfilled or delayed expectations surrounding this initiative have reportedly contributed to selling pressure across cryptocurrency investment products.

Despite these challenges, Bitcoin has maintained price levels above $80,000, showing resilience amid the outflows. However, market observers caution that upcoming European Union retaliatory tariffs could introduce additional volatility to cryptocurrency markets, potentially affecting Bitcoin’s price trajectory in the near term.

The mixed performance of cryptocurrency ETFs comes at a time when the broader digital asset market faces increased scrutiny and regulatory attention worldwide, factors that continue to influence institutional and retail investor behavior in this emerging asset class.

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