Weekly flows for spot Bitcoin ETFs remained negative for the fourth consecutive week as macroeconomic factors continued to weigh heavily on investor sentiment.
According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded another week of outflows from March 3-5, with nearly $800 million exiting the funds. This follows a record outflow week that saw over $2.61 billion in redemptions, extending the negative flow streak to four consecutive weeks with total net outflows exceeding $4.5 billion.
Notably, Bitcoin ETFs recorded net negative flows throughout last week, starting with $74.19 million on Monday, followed by $143.43 million, $38.3 million, $134.26 million, and culminating in the largest outflow of $409 million on Friday.
On the final day of the week, ARK and 21Sharesโ ARKB led the outflows with $160.03 million, followed closely by Fidelityโs FBTC, which saw $154.89 million withdrawn by investors. Other major ETF issuers, including BlackRockโs IBIT, Grayscaleโs GBTC, and Bitwiseโs BITB, also experienced outflows of $39.85 million, $36.46 million, and $18.6 million, respectively. VanEckโs HODL was the only fund to buck the trend, recording a modest inflow of $619.55K.
Meanwhile, the nine spot Ethereum funds also reported two consecutive weeks of negative flows, with $455 million exiting the funds, reflecting broader bearish sentiment in the crypto market.
Despite widespread anticipation that the White House Crypto Summit could provide a boost to the market, Bitcoin ETFs continued their downward trend. Analysts attribute this decline to ongoing macroeconomic concerns, particularly President Donald Trumpโs trade tariffs and overall economic uncertainty, which appear to be shaking investor confidence in digital assets.
Some experts suggest that strategic market shifts are also contributing to the sell-off. One prevailing theory is that hedge funds have been capitalizing on low-risk arbitrage trades between Bitcoin spot ETFs and CME futures. As these trades unwind, liquidity is drying up, leading to increased selling pressure and exacerbating ETF outflows.
Another factor influencing Bitcoinโs recent price swings is Trumpโs announcement of the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile. While many traders expected the Crypto Summit to be a bullish event, Bitcoinโs (BTC) price instead dropped from $90,000 to $85,000 following the signing of the executive order.
According to Kadan Stadelmann, CTO of Komodo, Bitcoin ETFs are experiencing major outflows despite the creation of the Strategic Bitcoin Reserve due to a classic case of โbuy the rumor, sell the news.โ In such scenarios, assets typically rise in anticipation of an event but decline once it materializes.
Stadelmann noted that speculation about the Strategic Bitcoin Reserve began in July 2024 when Trump first mentioned the initiative. By the time the official announcement was made during Thursdayโs Crypto Summit, the market had already priced it in, leading to a sell-off.
He added that in these situations, โpeople who are less informed, connected, and monied often buy the news and lose money.โ Additionally, the summit took place during a challenging time for the market, with concerns over trade tariffs compounding existing worries about inflation, a slowing real estate market, weak consumer spending, and declining savings.
