David Edwards
For U.S. spot Bitcoin exchange-traded funds (ETFs), March has been a difficult month, with almost all of them reporting net negative results. A protracted downward trend for Bitcoin that might last up to a year is currently being warned about by analysts.
Outflows from Bitcoin ETFs Outweigh Inflows
Data from Farside Investors shows that over the first 17 days of March, spot Bitcoin ETFs saw outflows of over $1.6 billion and inflows of only $351 million, for a net outflow of almost $1.3 billion.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) was one of the most severely impacted ETFs, with $552 million in withdrawals compared to only $84.6 million in inflows. Likewise, there were just $136.5 million in inflows and $517 million outflows from Fidelity’s Wise Origin Bitcoin Fund (FBTC).
Significant losses were also experienced by Grayscale’s Bitcoin Trust ETF (GBTC), which had over $200 million in withdrawals and no inflows.
The only exception to the pattern, meanwhile, was Grayscale’s Bitcoin Mini Trust ETF (BTC), which had $55 million in net inflows and no outflows.
ETFs Based on Ethereum Also Face Challenges
It’s not just Bitcoin ETFs that are feeling pessimistic. Investment products based on ether also saw notable withdrawals.
- In March, BlackRock’s iShares Ethereum Trust ETF (ETHA) saw no inflows and $126 million in withdrawals.
- Just $21 million was input into Fidelity’s Ethereum Fund (FETH), compared to $73 million in outflows.
The overall trend remained negative, even though spot Ether ETFs witnessed $14 million in inflows on March 4, providing a small moment of optimism. Over $300 million was pulled out of ether-based ETFs during the month.
Market Prospects: Is the Bull Cycle in Bitcoin Over?
The general drop in cryptocurrency exchange-traded goods is consistent with the market’s increasing pessimism.
The CEO of CryptoQuant, Ki Young Ju, announced on March 18 that the “Bitcoin bull cycle is over” and forecasted bearish or sideways price movement for up to a year. Ju claims that on-chain data point to a bear market, where new Bitcoin whales are selling for less money as liquidity declines.
Investors are anticipating prolonged market volatility in the upcoming months as Bitcoin and Ether ETFs are having difficulty regaining traction.
