Spot Bitcoin ETFs in the U.S. shifted back to outflows on March 3 as Bitcoin retraced gains, driven by a risk-off sentiment stemming from trade tensions and skepticism over a U.S. crypto reserve fund.
According to data from SoSoValue, the 12 spot Bitcoin ETFs resumed their outflow trend on Monday, with $74.19 million exiting the funds following a previous day of net inflows totaling $94.34 million.
BlackRockโs IBIT led the outflows for the third consecutive day, with $77.97 million in net redemptions, while Grayscaleโs GBTC continued its outflow trend with $54.39 million withdrawn by investors.
ARK and 21Sharesโ ARKB bucked the trend with $58.18 million in net inflows. The remaining nine BTC ETFs saw no activity on the day.
The total daily trading volume for these investment products stood at $5.99 billion on March 3, while total net inflows since their launch amounted to $36.97 billion as of press time.
Meanwhile, the nine Ethereum ETFs recorded their eighth consecutive day of outflows on the same day, with $12.10 million exiting the funds. The negative flow was led by BlackRockโs ETHA, which saw investors withdraw $16.06 million. Some of these outflows were offset by $3.96 million in inflows into Bitwiseโs ETHW fund. The remaining seven ETH funds remained neutral on the day.
The significant outflows from these ETFs come amid a risk-off sentiment among investors, driven by U.S. President Donald Trumpโs confirmation that the U.S. will impose 25% tariffs on Canada and Mexico starting March 4, eliminating hopes for a last-minute deal that could have eased trade tensions. In response, both countries have vowed to retaliate. Additionally, a 10% tariff on Chinese imports will take effect the same day.
Further concerns stem from Trumpโs announcement of plans to establish a U.S. Crypto Strategic Reserve, which would consist of a basket of crypto assets, including Bitcoin and Ethereum, as the core holdings.
While the initiative aims to position the U.S. as the โCrypto Capital of the World,โ it has drawn criticism from the crypto community, with many arguing that it contradicts Bitcoinโs core principle of decentralization. Some fear that a currency designed to be free from government control may now be subject to U.S. government actions.
Bitcoin (BTC), which surged 11% to an intraday high of $94,770 on Monday, retraced 9.5% to trade at $84,011 at press time as investors adopted a risk-off stance amid escalating trade tensions and concerns over the feasibility of the strategic reserve plan. Ethereum (ETH) also took a hit, dropping 13.8% over the past day to $2,098 at the time of writing.
Weighing in on Bitcoinโs recent volatility, Matt Mena, crypto research strategist at 21Shares, told crypto.news that the market reaction is driven by โrenewed fears of inflation and economic uncertainty,โ though he believes the selloff is an overreaction.
According to Mena, many investors anticipated this move, and as futures markets adjust overnight, Bitcoin could find stability when trading resumes. โWhen the market opens [on March 4], weโll likely see this stabilize as the futures market corrects for todayโs move,โ he said.
While short-term price swings due to macroeconomic events like tariffs may continue, Mena believes these developments are ultimately laying the groundwork for โlong-term growth and mainstream financial integration.โ
