Bitcoin ETFs have experienced net outflows for the second month in a row, as inflows diminish amid a lack of retail investor interest.
Following a strong January, Bitcoin ETFs have lost momentum, with ongoing outflows and dwindling investor enthusiasm as retail interest remains weak.
In a recent analysis shared on X, experts from a blockchain research firm highlighted that while total inflows for the year so far amount to $1.05 billion, this figure is largely influenced by a significant surge of $5.3 billion in January. Since that peak, inflows have noticeably slowed, leading to net outflows in March.
“Bitcoin ETFs heavily depend on favorable funding rates and available arbitrage chances. A substantial increase in Bitcoin ETF inflows seems unlikely in the near future.”
Anonymous Analysts
According to the analysts, retail investors are less active in the cryptocurrency market compared to prior cycles, which may be curbing demand for Bitcoin ETFs. They suggest that with retail speculation in the crypto space remaining subdued, inflows are “not exhibiting strong momentum.”
Additionally, Bitcoin ETFs are lagging behind other investment alternatives, with recent performance trailing assets like gold, which continues to reach new all-time highs.
Experts from QCP Capital noted in a Telegram update that the markets are now paying close attention to President Donald Trump’s upcoming “Liberation Day” announcement on April 2, during which he is expected to introduce new reciprocal tariffs. They pointed out that with consumer confidence at a 12-year low and equities under pressure from a 4-5% weekly decline, aggressive trade policies could exacerbate recession fears and further impact risk assets, including Bitcoin (BTC).