Bitcoin exchange-traded funds (ETFs) in the U.S. have been struggling to attract investors in recent weeks. At the end of February, these crypto-based funds saw a record-breaking single-day withdrawal of $1.14 billion, the biggest outflow in their history.
Things didn’t improve much in early March, with investors pulling out nearly $800 million from Bitcoin ETFs over the past week. This trend suggests that big institutional investors in the U.S. are losing interest in these funds.
Bitcoin ETFs Lose $409 Million in a Single Day
On Friday, March 7, Bitcoin ETFs in the U.S. recorded another big loss, with investors withdrawing around $409 million in just one day. This marked the fifth straight day of outflows.
The biggest losses came from:
- Ark & 21 Shares Bitcoin ETF (ARKB) – lost $160 million
- Fidelity Wise Origin Bitcoin Fund (FBTC) – lost $155 million
- BlackRock’s Bitcoin Trust (IBIT) – lost $39.85 million
- Grayscale’s Bitcoin Trust (GBTC) – lost $36.5 million
- Bitwise’s BTC Fund (BITB) – lost $18.6 million
The only ETF that gained on Friday was VanEck’s Bitcoin fund (HODL), which added just $617,500—a tiny amount compared to the losses seen in other funds.
So far in March, Bitcoin ETFs haven’t seen a single day of net inflows. The last time investors added more money than they withdrew was February 28.
With this latest $409 million daily outflow, the total weekly loss for Bitcoin ETFs now stands at $799.9 million, making it the fourth straight week of net withdrawals. This is also the second-largest weekly outflow in history for these funds.
Bitcoin’s Price Struggles Alongside ETF Outflows
The poor performance of Bitcoin ETFs reflects the slow and uncertain price movement of Bitcoin itself. Despite some positive developments in the U.S. crypto market, Bitcoin’s price hasn’t gained strong momentum.
As of now, Bitcoin is trading at around $86,100, down 1% in the past 24 hours. However, on a weekly scale, BTC is still up more than 2%, according to CoinGecko.
This kind of volatility is nothing new. In January 2024, when Bitcoin ETFs were first approved, they saw massive inflows, helping push Bitcoin’s price above $50,000. But investor sentiment has shifted, with more people cashing out their profits instead of holding onto their investments.
With Bitcoin ETFs struggling to attract new buyers, all eyes are now on whether the market can turn things around in the coming weeks.
