Despite a strong start to the year, Bitcoin ETFs have faced a major setback in 2025. A wave of heavy sell-offs erased nearly all early inflows, shaking investor confidence. As Bitcoin’s price continues to drop, ETFs are struggling to regain momentum.
Bitcoin ETFs See Massive Outflows in Early 2025
According to Bread & Butter on X (formerly Twitter), Bitcoin ETFs saw inflows of $5.7 billion between January 1 and February 7. However, this was quickly followed by a $5.3 billion sell-off, leaving the net inflows at just $106 million.
The biggest weekly outflow came in the final week of February, hitting $2.7 billion. Since their launch, Bitcoin ETFs have experienced net outflows in three months, with February’s $3.5 billion marking the highest monthly outflow yet.
Bitcoin ETF Inflows Show Signs of Recovery
Despite the earlier downturn, inflows returned on March 14, with consecutive daily gains. By March 20, year-to-date net inflows climbed above $600 million.
On March 17, Bitcoin ETFs recorded their highest single-day inflow in 41 days. Major asset managers like Fidelity and ARK Invest have been buying Bitcoin, signaling a potential bullish shift.
However, the recovery has been uneven across the 11 ETFs:
- iShares Bitcoin Trust ETF (IBIT) led with $172.1 million in inflows.
- Fidelity Wise Origin Bitcoin Fund (FBTC) added $9.2 million.
- VanEck Bitcoin ETF (HODL) gained $11.9 million.
- Meanwhile, Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF (BITB), and Franklin Templeton Digital Holdings Trust (EZBC) saw outflows.
Bitcoin’s Price Outlook: Bear Trap or Fakeout?
Bitcoin remains volatile, with a 12.1% drop over the past month and a 2% decline in the last 24 hours, trading at $84,147.
Despite the uncertainty, analysts believe the worst may be over. Former BitMEX CEO Arthur Hayes pointed to his US bank credit supply index, which suggests a potential bullish turn.
Some experts compare Bitcoin’s current price action to gold, predicting it may soon recover from this “fakeout” phase. Others suspect Bitcoin is stuck in a bear trap, with a breakout on the horizon.
