Bitcoin ETFs See Heavy Outflows as Market Volatility Surges

• Bitcoin ETFs recorded $143.3 million in outflows on Thursday.
• Fidelity’s Bitcoin ETF lost over $75 million, the highest among peers.
• ARK 21Shares Bitcoin ETF faced significant outflows exceeding $60 million.

Bitcoin exchange-traded funds (ETFs) recorded significant outflows on Thursday, highlighting renewed investor uncertainty. According to SoSoValue, total outflows reached $143.3 million, led by declines in key ETFs. While BlackRock’s iShares Bitcoin Trust ETF (IBIT) attracted $45.75 million in inflows, this was not enough to offset overall losses.

Bitcoin ETFs Face Heavy Outflows Again

The Fidelity Wise Origin Bitcoin Fund (FBTC) operated by Fidelity managed to lose the largest amount of $75 million from its investor funds. Three hundred million dollars left ARK 21Shares Bitcoin ETF (ARKB) after it experienced substantial withdrawal activity that exceeded $60 million. Total Bitcoin ETF investments registered negative flows because of the aggregated withdrawals reported throughout the day.

Day traders exhibited caution because Bitcoin maintained a downward trend selling at $82,511 before suffering its 7% weekly price drop. Some traders take profits from their investments when market uncertainties appear during this period. BlackRock’s IBIT attracted new investment capital which managed to minimize the total impact of negative flows from Bitcoin ETFs.

The price of Bitcoin dropped as the S&P 500 index entered a correction stage because of worldwide trade conflicts. On Thursday the Nasdaq-100 index declined by nearly 2% and this movement put additional stress on Bitcoin’s market performance. The prevailing economic doubts in the market led ETF investors to act carefully.

The Bloomberg data demonstrates that BTC ETF investments continue to accumulate $35 billion though they failed to reach their previous highpoint of $40 billion. The combination of US Bitcoin ETFs maintains $115 billion in total assets illustrating that long-term investors maintain their faith in these funds. Goldman Sachs continues its support for Bitcoin ETFs by possessing investments worth more than $1.5 billion.

Long-Term Holders Increase Bitcoin Holdings

Bitcoin ETFs experienced $5 billion of total withdrawals starting from mid-February in which March 13alone resulted in $135 million of investor loss. The IBIT from BlackRock demonstrated positive net inflows which brought in $45.7 million. Recent continuous withdrawals show that investors have started changing their outlook since receiving consistent investments for extended durations.

Even after ETF outflows, the number of long-term Bitcoin holders continued to expand their cryptocurrency ownership. Analyst Ali Martinez’s investment report showed that BTC wallet holders added more than 131,000 BTC units during the recent month. Even though the cryptocurrency market experienced a price decline, many investors treated it as an opportunity to buy rather than perceiving it as a negative indicator.

According to CryptoQuant CEO Ki Young Ju, Bitcoin demand remains static. However, he observes that a bear market decision should not be made at this time. Market indicators show opposing trends since exchange-traded funds (ETFs) reduce their holdings while long-term investors buy more BTC.