Spot Bitcoin ETF Outflows

Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded their third consecutive day of net outflows on March 5, primarily driven by Valkyrie’s BRRR.

According to data from SoSoValue, the twelve spot Bitcoin ETFs experienced
$38.3 million in outflows on Wednesday, extending their streak to three days with net redemptions totaling $74.19 million and $143.43 million on Monday and Tuesday, respectively.

The majority of the outflows were from Valkyrie’s BRRR, which saw
$60.42 million exit the fund, while Invesco Galaxy’s BTCO and Bitwise’s BITB recorded more modest outflows of $9.94 million and $6.87 million, respectively.

In contrast, BlackRock’s IBIT, the largest Bitcoin ETF by net assets, managed to attract $38.93 million from investors, bringing its total net inflows to $39.66 billion since its inception. The remaining eight Bitcoin ETFs reported zero flows for the day.

The total trading volume for these investment vehicles was recorded at
$3.27 billion on March 5.

Ethereum ETFs Also Experience Outflows

Meanwhile, nine Ethereum ETFs saw outflows on March 5, with $63.32 million exiting the funds after a previous day of $14.58 million in net inflows, which had ended an eight-day inflow streak. The outflows were entirely from Grayscale’s ETHE, which has the highest fees among Ethereum ETFs. No other Ethereum funds experienced flows.

Market Dynamics and Future Outlook

The significant outflows from both Bitcoin and Ethereum ETFs are perceived to be linked to the growing uncertainty surrounding former President Donald Trump’s proposal for a U.S. Crypto Strategic Reserve. While the proposition aims to strengthen the U.S.’s position in the crypto sector, it has ignited debate within the crypto community as many view it as contradictory to Bitcoin’s decentralized ethos, raising concerns about potential government influence over a supposedly independent asset.

Initially, this announcement provided a boost to the digital asset market; however, this rally was short-lived as another wave of selling pressure emerged. Despite this, Bitcoin and the broader crypto market have somewhat rebounded, with BTC nearing $92,500 and the total market cap remaining above $3.1 trillion.

Analysts anticipate more price volatility in the near term due to ongoing geopolitical tensions and trade uncertainties. Historical data from Bitcoin’s volatility index indicates that March may see increased turbulence before stabilization in April, potentially alleviating some selling pressure.

At press time, Bitcoin (BTC) was trading at $92,710, reflecting a 6.3% increase over the past day, while Ethereum (ETH) rose 5.9% to $2,299 per coin.

Read more: Bitcoin bounces back above $90K as Trump delays Canada, Mexico auto tariffs