Bitcoin ETFs Face Persistent Outflows

Bitcoin Exchange-Traded Funds (ETFs) have been experiencing significant outflows, with net inflows nearly depleted in 2025. In contrast, asset managers are advocating for altcoin ETFs, targeting Litecoin, XRP, Solana, and Dogecoin as potential frontrunners.

The crypto market is under pressure as it struggles to reach prior highs, and ETFs are notably affected.

Bitcoin ETFs Struggle

The U.S. spot Bitcoin ETF market has been experiencing a sharp decline, with net inflows struggling. February recorded only five days of positive inflows, and March has seen just one day so far. As a result, total net inflows for 2025 have almost evaporated, with fund values plummeting nearly 25% from their January peak. Current cumulative net inflows stand at $35.20 billion, slightly above the $35.00 billion recorded at the year’s start.

Community Concerned

This downturn reflects Bitcoin’s price struggles, raising alarms about investor confidence in ETFs. Observations from the community indicate the volatility of Bitcoin ETFs this year. Some users highlight concerns about the loss of year-to-date gains and the need to reassess optimistic market narratives.

Despite a minor recovery in total assets under management for Bitcoin ETFs, the prevailing trend remains troubling. A recent 10% increase in Bitcoin’s price has led to a slight uptick in funds, but the ongoing negative net outflows should not be overlooked.

Recent Downturn

Recently, Bitcoin ETFs faced net withdrawals of $371 million on March 11, marking the seventh consecutive day of outflows. This trend is mirrored by Ethereum ETFs, which saw $21.57 million in net outflows over five straight days. These challenges indicate that attention is shifting towards alternative cryptocurrency funds.

Will Altcoin ETFs Take the Spotlight?

Reports indicate a growing interest among asset managers to introduce altcoin ETFs to broaden market exposure beyond Bitcoin. Proposed funds may include assets like Polkadot, Axelar, and Avalanche, showing an expanding interest in institutional investment options. Analysts believe that potential contenders for regulatory approval could include Litecoin (LTC), Ripple (XRP), Solana (SOL), and Dogecoin (DOGE) ETFs. If these altcoin funds are approved, they could rejuvenate the crypto investment landscape amidst Bitcoin’s persistent struggles.