Crypto ETFs See $1.7 Billion Weekly Outflow, Extending Negative Streak
Cryptocurrency exchange-traded funds recorded $1.7 billion in outflows last week, extending their negative streak to 17 consecutive days and marking a fifth straight week of withdrawals, according to data from digital asset manager CoinShares.
Total outflows over the five weeks have reached $6.4 billion, causing crypto products’ assets under management to decline to $48 billion from a peak of $134 billion last year.
The US dominated the outflow trend, accounting for $1.16 billion or approximately 93% of all withdrawals. Switzerland and Germany also contributed to the negative flow with outflows of $528 million and $8 million respectively.
Bitcoin-specific ETFs suffered particularly, with $978 million leaving these products last week, bringing their five-week outflow total to $5.4 billion. This coincided with Bitcoin dropping below the $80,000 threshold.
Market analysts attribute the sustained outflows to a combination of macroeconomic factors and uncertainty around U.S. trade policies.
Despite the broader trend, BlackRock’s IBIT product registered $218.1 million in net inflows on March 19, contributing to a daily total inflow of $209.1 million across U.S. Bitcoin spot ETFs, suggesting some institutional investors remain bullish.
CryptoQuant data indicates long-term Bitcoin holders continue accumulating despite market corrections, with significant increases in Bitcoin held for three to six months.
Industry observers expect ETF flows to reverse if the Federal Reserve signals a shift toward monetary easing in upcoming policy meetings. According to CME Group’s FedWatch tool, traders are currently pricing in one rate cut by June, with a 50-50 chance of a third cut by year-end.
This outlook comes amid ongoing concerns about Trump administration tariff policies that analysts warn could reignite inflation pressures, potentially complicating the Fed’s path to lower rates.
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