ETF Outflows: What Happened to Bitcoin and Ethereum Funds?

The cryptocurrency market has been declining for weeks, as evidenced by the outflows recorded by bitcoin and ethereum ETFs. Just last week, these financial products tracking both assets saw outflows exceeding $1.2 billion across several countries, including the US, Switzerland, and Canada. Withdrawals from other digital asset products brought total outflows to $1.7 billion, and over the past five weeks, total outflows from this negative streak have surpassed $6.4 billion.

A report from digital asset investment firm CoinShares on Monday revealed that crypto investment products marked their 17th consecutive day of outflows, with bitcoin leading the trend. The firm stated that this is the longest negative streak it has recorded since it began tracking in 2015. Due to this price decline and consistent outflows, total assets under management for digital asset investment products decreased by $48 billion.

From US spot bitcoin ETFs alone, outflows of over $980 million were recorded from several asset managers such as BlackRock, Grayscale, Fidelity, Ark Invest/21Shares, and WisdomTree.

BlackRock’s IBIT recorded the largest outflows, amounting to $383 million, while Fidelity’s FBTC followed suit with $316 million in withdrawals. IBIT saw only one day of inflows out of five trading days in the week. FBTC also saw only three days of outflows and one day with no outflows.

From March 10 to 14, the US spot bitcoin ETF market recorded only one day of inflows, according to CoinGlass data. Occasional inflows recorded by IBIT, FBTC, ARKB Ark Invest, VanEck’s HODL, and Bitwise’s BITB were not enough to offset the massive outflows seen over approximately two trading days. For the US spot ethereum ETF market, funds have been in a streak of outflows since March 5. However, last week they lost $189 million.

Once again, BlackRock’s ETHA led the losses with outflows exceeding $63 million, while Fidelity’s FETH followed behind with withdrawals exceeding $61 million. Ethereum ETFs recorded only two days of inflows, their only positive flows since March 5, but deposits were still not enough to offset the withdrawals. In fact, inflows were less than $1.5 million each time.