BITCOIN ETF

Bitcoin ETF outflows surged again this week as BTC remained locked in a narrow trading range. On Monday alone, over $250 million exited U.S.-listed spot Bitcoin ETFs, reflecting a third straight day of negative flows.

BTC Price Stagnation Dims Institutional Appetite

Bitcoin’s price has hovered around $105,000 for the past week, triggering concern among institutional investors. According to data from SosoValue, Monday’s ETF outflows hit $268 million—a clear sign that big players are pulling back as momentum fades.

This pattern often emerges during market consolidation. Institutions either rotate into alternative assets or take a “wait-and-see” approach until a stronger trend forms.

ETF Activity Slows as Market Cools

While Bitcoin remains range-bound, the sharp drop in ETF inflows suggests a decline in short-term confidence. Many investors are opting to stay on the sidelines rather than increase exposure during this uncertain phase.

Bulls Show Strength in the Derivatives Market

Despite weak ETF activity, BTC futures and options traders remain bullish. Bitcoin is currently trading at $105,422, up 1% in the past 24 hours. This mild uptick is supported by growing optimism in the derivatives space.

One strong indicator is the positive funding rate, now at 0.0038%. This metric reflects the sentiment in the perpetual futures market. When positive, it means long traders are paying shorts—showing that most traders expect the price to climb.

In addition, options market data shows increased demand for calls. These contracts give traders the right to buy BTC at a fixed price, and their popularity signals expectations of an upward move.

Market Outlook: Mixed Signals Ahead

While Bitcoin ETF outflows suggest caution from institutions, the derivatives market tells a more hopeful story. The divergence between these two investor groups points to potential volatility ahead.

If BTC breaks out of its current range, both retail and institutional investors may return aggressively. Until then, the market remains in a holding pattern—with signs of bullish pressure building beneath the surface.

After five weeks of continuous outflows, US Bitcoin ETFs rebounded with $744 million in net inflows this week. On Monday, March 17, ETFs recorded a $274 million inflow, the highest daily figure in over a month.

This turnaround hints at renewed confidence among institutional investors as macroeconomic concerns ease. However, Bitcoin still trades below $90,000 despite the positive trend.

Bitcoin ETFs Recover from $5 Billion Outflows

Since mid-February, US Bitcoin ETFs suffered over $5.3 billion in losses, with $3.5 billion withdrawn in one of the worst months on record. Institutional sell-offs, driven by market uncertainty, caused a steep decline.

However, March has brought a shift in sentiment. Inflows have increased steadily, signaling renewed market confidence. The week kicked off strong, with Bitcoin ETFs seeing $274 million in inflows on Monday, followed by six consecutive days of net gains.

On March 21, total net inflows reached $83.09 million, with BlackRock’s IBIT leading the surge at $150 million in positive flows. Meanwhile, Grayscale’s GBTC continued its outflow trend, losing $21.9 million that day.

Are Institutional Investors Anticipating a Bitcoin Rally?

The steady rise in ETF inflows suggests that large investors may be positioning for a potential Bitcoin recovery. Crypto analyst Zia ul Haque pointed to this resurgence, speculating that institutions might have inside knowledge.

𝐈𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐞𝐬 𝐬𝐭𝐚𝐫𝐭𝐞𝐝 𝐀𝐜𝐜𝐮𝐦𝐮𝐥𝐚𝐭𝐢𝐧𝐠 𝐀𝐠𝐚𝐢𝐧: 𝐃𝐨 𝐭𝐡𝐞𝐲 𝐤𝐧𝐨𝐰 𝐬𝐨𝐦𝐞𝐭𝐡𝐢𝐧𝐠?! 🤩

Bitcoin ETF saw a positive inflow for the last consecutive 5 days! 🔥

This is the major consecutive inflow this month.

From the beginning of March, giants… pic.twitter.com/Co6wCkia2I

— Zia ul Haque (@ImZiaulHaque) March 21, 2025

This observation aligns with Bitcoin’s price resilience, despite ongoing volatility. However, some analysts remain skeptical, arguing that ETF inflows do not necessarily indicate sustained buyer demand.

Market Volatility and ETF Arbitrage

While ETF inflows have improved, some analysts believe the market structure is shifting. Hedge funds may be using arbitrage strategies involving Bitcoin spot ETFs and CME futures, rather than direct BTC accumulation.

7/ Big takeaway?
•We don’t know if the pain is over yet, but it’s likely to end once this trade fully unwinds.
•The ETF “demand” was real, but some of it was purely for arbitrage. There was genuine demand for owning BTC, just not as much as we were led to believe.
•Until real…

— Kyle Chassé / DD🐸 (@kyle_chasse) February 27, 2025

If institutional demand remains speculative, Bitcoin’s price stability could remain uncertain despite the ETF inflow rebound.

Bitcoin and Ethereum Market Outlook

As of this writing, Bitcoin trades at $84,148, down 0.46% in the last 24 hours. Despite the ETF recovery, BTC’s price remains sluggish.

Meanwhile, Ethereum ETFs continue to struggle, posting 12 consecutive days of negative flows. This divergence highlights ongoing challenges in the broader crypto market.

Spot Bitcoin exchange-traded funds (ETFs) in the U.S. resumed their positive inflow streak on January 21, following President Donald Trump’s inauguration. Bitcoin continues to hold strong above the $105K mark.

Bitcoin ETF Inflows Surge

Data from SoSoValue shows that the 12 spot Bitcoin ETFs recorded a net inflow of $802.5 million on January 21. This extends their four-day inflow streak, with over $3.2 billion entering the funds during this period.

BlackRock Leads Inflows

The majority of inflows came from BlackRock’s IBIT, which attracted $661.9 million, maintaining its lead for the third consecutive day. Grayscale’s mini Bitcoin Trust followed with $136.39 million.

Other ETFs, including ARK 21Shares’ ARKB, Fidelity’s FBTC, and Franklin Templeton’s EZBC, also contributed, adding $8.51 million, $6.97 million, and $6.18 million, respectively.

However, Bitwise’s BITB experienced an outflow of $17.41 million, while the remaining ETFs recorded no significant changes.

Trading Volume and Total Inflows

On January 21, the total trading volume for all 12 Bitcoin ETFs reached $5.05 billion. Since their launch, the total net inflows into these investment products now stand at $38.98 billion.

Inflows Fall Short of Previous Day

Despite the impressive $802.5 million inflow, it fell short of the previous trading day’s $1.08 billion. Analysts attribute this decline to Trump’s failure to issue an expected executive order prioritizing Bitcoin and cryptocurrencies.

Bitcoin’s Current Price

At the time of writing, Bitcoin is trading at $105,708, marking a 3.1% increase.

Conclusion

Spot Bitcoin ETFs have shown strong inflows, with BlackRock leading the way. Despite a slight slowdown in inflows, market experts remain optimistic about future growth driven by policy developments under the new administration.