Spot Bitcoin ETF Weekly Flows Remained Negative for the Fourth Consecutive Week

Weekly flows for spot Bitcoin ETFs remained negative for the fourth consecutive week as macroeconomic factors continued to weigh heavily on investor sentiment.

Weekly flows for 12 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 saw another week of outflows with nearly $800 million exiting the funds from March 3-5. 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, and $134.26 million. The largest outflow of the week occurred on Friday with $409 million exiting the ETFs.

On the final day of the week, ARK and 21Shares’ ARKB led the outflows with $160.03 million. Close behind was Fidelity’s FBTC, which saw $154.89 million withdrawn by investors. Other major ETF issuers, including BlackRock’s IBIT, Grayscale’s GBTC, and Bitwise’s BITB, also experienced outflows to the tune of $39.85 million, $36.46 million, and $18.6 million, respectively. Among the ten funds, only VanEck’s HODL bucked the trend, reporting an 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.

Some experts suggest that hedge funds have been capitalizing on low-risk arbitrage trades between Bitcoin spot ETFs and CME futures, contributing to the sell-off. As these trades unwind, liquidity is drying up, leading to increased selling pressure and exacerbating ETF outflows.

Another factor influencing Bitcoin’s recent price swings is Trump’s 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, Bitcoin’s (BTC) price 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 “buy the rumor, sell the news.” 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 Thursday’s Crypto Summit, the market had already priced it in, leading to a sell-off.

He added that in these situations, “people who are less informed, connected, and monied often buy the news and lose money.” 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.