Spot Bitcoin ETFs in the US Experienced a Sharp Drop in Net Inflows

Spot Bitcoin exchange-traded funds in the United States experienced a sharp drop in net inflows over the past week as they snapped a 10-day streak of inflows that brought in nearly $1.07 billion.

The past week saw a significant decline in net inflows into spot Bitcoin exchange-traded funds (ETFs) in the United States, as they rapidly terminated a 10-day streak of inflows.

According to SoSoValue, the 12 spot Bitcoin ETFs reported $196.48 million in net inflows over the past seven days, showing a steep 73.6% drop from the previous week, which witnessed a massive $744.35 million enter the funds.

Breaking down the daily movements, Bitcoin ETFs recorded net positive flows for the first four days of the week of March 24-28. It started with $84.17 million on Monday and continued with $26.83 million, $89.57 million, and $89.06 million on Tuesday, Wednesday, and Thursday, respectively.

However, these investment products displayed a shift in investor sentiment, concluding the week with a net outflow of $93.16 million on Friday.

The majority of inflows were captured by BlackRock’s IBIT, which drew in $172 million, and Fidelity’s FBTC with $86.8 million according to Faside data.

Modest positive momentum also came from VanEck’s HODL, which saw $5 million in net inflows.

But it wasn’t entirely bullish as ARK 21Shares’ ARKB, Bitwise’s BITB, WisdomTree’s BTCW and Invesco’s BTCO still saw combined outflows of $67.4 million. The remaining BTC ETFs remained flat over the five days.

Now, the outflows seen on Friday, March 28, ended a 10-day streak of inflows. This also marked the longest inflow run of the year, which brought nearly $1.07 billion into the funds.

Analysts described the figure as relatively modest, noting that while there is demand for Bitcoin, investors are not showing an aggressive risk appetite.

Meanwhile, the sharp shift in investor mood on Friday came as Bitcoin’s quarterly performance is turning out to be its worst since 2018, when it crashed by 49.7%.

So far this quarter, Bitcoin is down 11.86% at $81,939, which is even worse than the 10.83% drop in Q1 2020. If prices bounce back a bit, the loss might end up being smaller than in 2020, but if the selling pressure continues, Bitcoin could dip below the $80,000 mark.

The recent sell-off erased almost all of Bitcoin’s weekly gains as investors remained cautious ahead of President Trump’s U.S. reciprocal tariffs set to take effect on April 2.

Additionally, stronger-than-expected core PCE data have raised concerns about a potential delay in Federal Reserve rate cuts, adding to market uncertainty.