Recently, spot Bitcoin exchange-traded funds in the United States have experienced a significant decline in net inflows after a stretch of 10 consecutive days of inflows that totaled nearly $1.07 billion.
As per data from a relevant source, the 12 spot Bitcoin ETFs saw net inflows of $196.48 million over the past week, reflecting a steep drop of 73.6% compared to the previous week’s inflows of $744.35 million.
Throughout the first four days of the week from March 24 to 28, Bitcoin ETFs achieved positive net flows, beginning with $84.17 million on Monday, followed by $26.83 million, $89.57 million, and $89.06 million. However, a shift in investor sentiment occurred, resulting in a net outflow of $93.16 million by Friday.
The bulk of the inflows was attributed to BlackRock’s IBIT, which attracted $172 million, with Fidelity’s FBTC following closely behind at $86.8 million, according to specific data. VanEck’s HODL also contributed positively, gaining $5 million in net inflows.
Nonetheless, it wasn’t a universally positive week, as ARK 21Shares’ ARKB, Bitwise’s BITB, WisdomTree’s BTCW, and Invesco’s BTCO collectively faced outflows totaling $67.4 million. The other BTC ETFs maintained steady levels throughout the week.
The outflows recorded on March 28 concluded a 10-day inflow streak, which was the longest of the year, generating close to $1.07 billion for the funds. Analysts noted that, while there is evident interest in Bitcoin, investors are not exhibiting a strong appetite for risk.
The notable swing in investor sentiment on Friday coincided with Bitcoin experiencing its worst quarterly performance since 2018, when it plummeted by 49.7%.
This quarter, Bitcoin has dropped 11.86% to $81,939, surpassing the 10.83% decline seen in Q1 2020. Should prices recover somewhat, losses may end up being less severe than in 2020; however, continued selling pressure could push Bitcoin below the $80,000 threshold.
The recent sell-off wiped out nearly all of Bitcoin’s weekly gains, as investors remained cautious ahead of President Trump’s U.S. reciprocal tariffs scheduled for April 2. Moreover, stronger-than-anticipated core PCE data has fueled worries regarding a delay in Federal Reserve rate cuts, contributing to overall market uncertainty.