Bitcoin (BTC) ETF Market Has Been Struck by Lightning as the Broader Market Struggles to Reclaim Previous Highs

The crypto market has been struck with lightning as the broader market struggles to reclaim previous highs.

The crypto market has been struck with lightning as the broader market struggles to reclaim previous highs.

The hardest-hit sector remains Exchange-Traded Funds (ETFs), which have been in a prolonged slump.

Bitcoin ETFs struggle

A deeper look into the market shows that the U.S. spot Bitcoin [BTC] ETF market has faced a sharp decline, with net inflows struggling to gain momentum.

February saw only five days of positive inflows, while March has recorded just one so far.

As a result, the total net inflows since the start of 2025 have nearly been wiped out, with fund values dropping by almost 25% from their late January peak.

According to SoSoValue data, the cumulative net inflows currently stand at $35.20 billion—only slightly above the $35.00 billion recorded on the first trading day of the year.

Community concerned

This downturn mirrors Bitcoin’s price struggles, raising concerns about investor sentiment in the ETF space.

Remarking on the same, an X account noted, 

“Looks like it’s been a wild ride for Bitcoin ETFs this year! Market trends sure know how to keep us on our toes.” 

Adding to the fray was another X user-added, 

“Looks like Bitcoin ETFs are taking a nosedive—erasing year-to-date gains is no small feat. Cumulative inflows hitting lows not seen since January? That’s a big red flag. Time to reassess those bullish narratives, folks.” 

Despite a slight recovery in the total value of assets under management (AUM) for BTC ETFs, the underlying trend remains concerning.

The recent 10% increase in Bitcoin’s price has contributed to this uptick, but it masks the persistent net-negative outflows recorded in recent weeks.

Recent downturn

Recently, too Bitcoin ETFs experienced net withdrawals of $371 million on the 11th of March, marking the seventh consecutive day of capital outflows.

This downward trend extended beyond BTC, as Ethereum [ETH] ETFs have also struggled, registering $21.57 million in net outflows for five straight days.

Needless to say, as Bitcoin ETFs face mounting challenges, the spotlight is shifting toward alternative cryptocurrency funds.

Will altcoin ETFs take the spotlight?

As per reports, a growing number of asset managers are now racing to introduce the first altcoin ETFs, aiming to diversify the market beyond BTC.

Proposed funds include holdings in assets such as Polkadot, Axelar, and Avalanche, reflecting a broader interest in expanding institutional investment options.

However, analysts suggest that the most likely contenders for regulatory approval are Litecoin [LTC], Ripple [XRP], Solana [SOL], and Dogecoin [DOGE] ETFs.

If approved, these funds could inject fresh momentum into the crypto investment landscape, potentially reshaping market dynamics amid Bitcoin’s ongoing struggles.