What Happened to Bitcoin and Ethereum Funds Last Week
The ongoing downturn in the cryptocurrency market has been stark, with Bitcoin and Ethereum exchange-traded funds (ETFs) facing significant outflows in recent weeks. This trend appears to reflect broader market concerns, as more than $1.2 billion was withdrawn from these financial instruments last week alone, impacting markets in the United States, Switzerland, and Canada. Cumulatively, outflows from various digital asset products have reached $1.7 billion for the week, and the last five weeks have seen a staggering total of over $6.4 billion in withdrawals.
### U.S. Spot Bitcoin ETFs Experience Major Outflows
In a notable report, CoinShares highlighted that the outflow streak for crypto investment products has now lasted for 17 consecutive days—a record since tracking began in 2015. This trend has primarily been driven by Bitcoin, affirming its status as the leader in the current market pullback. The total assets under management for digital asset investment products have decreased by an alarming $48 billion as a consequence.
Specifically, the U.S. spot Bitcoin ETF market reported over $980 million in outflows. Prominent asset managers such as BlackRock, Grayscale, and Fidelity are among those affected. BlackRock’s IBIT ETF experienced the highest outflows at approximately $383 million, while Fidelity’s FBTC saw withdrawals of around $316 million. Notably, IBIT recorded just a single day of inflow within the week, reinforcing a bearish sentiment among investors.
Data from CoinGlass further illustrates how recent market activity has been unfavorable, with only one day of inflows for Bitcoin ETFs between March 10 and March 14. The typically fluctuating inflows from funds like IBIT, FBTC, Ark Invest’s ARKB, VanEck’s HODL, and Bitwise’s BITB proved inadequate to counter the persistent outflows experienced over multiple trading sessions.
### Ethereum Funds Continue to Dwindle
The outflow struggle is not limited to Bitcoin; Ethereum funds have also been on a downward slope since March 5. Last week alone, the U.S. spot Ethereum ETF market lost $189 million. Leading this downward trend, BlackRock’s ETHA netted outflows exceeding $63 million, while Fidelity’s FETH followed with $61 million in withdrawals. Here too, the funds recorded only two days of inflow since the initial drop, but even those contributions were less than $1.5 million on each occasion—far from enough to mitigate the significant losses.
Simultaneously, both Bitcoin and Ethereum are grappling to reclaim their positions around the $90,000 and $2,000 marks, respectively. The current outflow dynamics suggest a climate of caution among investors as market uncertainties prevail regarding the future trajectory of these digital assets.
Such a pronounced withdrawal trend signals not only investor sentiment but also broader implications for the cryptocurrency market, as reflection on asset stability and growth potential continues to dominate discussions among market participants.
