Bitcoin ETFs Face $5.3 Billion Setback: Signs of Revival on the Horizon

In spite of the robust performance last year, the market’s fluctuations have altered the forecast for Bitcoin exchange-traded funds (ETFs) in 2025. A sequence of significant sell-offs has erased almost all the inflows that the ETFs had garnered earlier in 2025.

This decline corresponds with Bitcoin’s ongoing price drop, resulting in the ETFs facing difficulties in sustaining their momentum as investor sentiment changes.

Bitcoin ETFs Encounter Significant Challenges in 2025

As per a recent update by Bread & Butter on X (previously Twitter), Bitcoin ETFs commenced the year on a promising note. From January 1 to February 7, they experienced total inflows of $5.7 billion.

However, a significant sell-off quickly ensued, diminishing $5.3 billion of those earnings. Consequently, net inflows for the year plummeted to a mere $106 million.

Remarkably, the largest weekly net outflow was recorded in the final week of February, amounting to $2.7 billion. Additionally, since the ETFs began trading, they have recorded outflows in three distinct months. February is notable for having the largest outflow so far, with an astonishing $3.5 billion noted.

Nevertheless, the update indicated a favorable reversal, mentioning that inflows into Bitcoin ETFs have recommenced. Since March 14, the ETFs have documented several consecutive days of inflows, elevating the year-to-date net inflows to over $600 million.

Notably, on March 17, BTC ETFs witnessed their peak single-day inflow in 41 days. In light of this renewed momentum, BeInCrypto emphasized that asset managers Fidelity and ARK Invest were accumulating significant amounts of Bitcoin, fostering a bullish trend.

According to the latest statistics, the daily total net inflow reached $165.7 million on March 20. However, this expansion was uneven across the 11 ETFs.

Only four reported inflows, with iShares Bitcoin Trust ETF (IBIT) leading at $172.1 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with $9.2 million, Grayscale Bitcoin Mini Trust ETF (BTC) with $5.2 million, and VanEck Bitcoin ETF (HODL) with $11.9 million.

Meanwhile, four ETFs saw no inflows, and three—Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF (BITB), and Franklin Templeton Digital Holdings Trust (EZBC)—experienced outflows, reflecting a mixed performance in the market.

“It remains uncertain whether this signifies the onset of a sustained recovery or simply a temporary respite,” the post stated.

This development occurs as Bitcoin’s price continues to navigate challenging circumstances. The cryptocurrency has encountered substantial setbacks due to changing macroeconomic factors, resulting in a significant decline.

As per BeInCrypto data, BTC has dropped by 12.1% over the past month and 2.0% in the last 24 hours alone. At the time of this report, it was trading at $84,147.

Nonetheless, analysts indicate that the worst may have passed. Arthur Hayes, former CEO of BitMEX, pointed towards a possible bullish shift, referencing his customized US bank credit supply index, which has been trending upwards.

“This doesn’t imply we are finished with declines, but the probabilities are shifting more bullish,” he noted.

Market analysts have also drawn comparisons between Bitcoin and gold. They anticipate that BTC may follow a similar path and emerge from its current “fakeout” phase. Others theorize that Bitcoin is trapped in a bear market that could soon end.