Unease Grows as Bitcoin ETFs Suffer Consecutive Outflows

Bitcoin ETF demand falters for the second straight day, but BTC bulls dismiss wider market jitters.

Bitcoin ETF balloons deflating by air rushing out of them.
Created by Gabor Kovacs from DailyCoin
  • Bitcoin cools following ATH last week.
  • Spot Bitcoin ETFs see net negative flows.
  • Market sentiment is uneasy.

The arrival of spot Bitcoin ETFs in January set off a speculative frenzy, with billions of dollars flowing into Wall Street coffers. This mania propelled Bitcoin to dizzying heights, culminating in a new all-time high of $74,000 last week, sending bullish sentiment red-hot as some assumed a sustained upswing.

However, the euphoria has been short-lived. Since tagging those record peaks, Bitcoin has been in a downward spiral, recording a local bottom of $60,800 in today’s trading. More ominously, the spot Bitcoin ETFs that catalyzed the rally saw their second consecutive day of outflows, further compounding uneasy market sentiment.

Bitcoin ETFs Continue to Bleed

Data compiled by Coinshares head of research James Butterfill showed net negative spot Bitcoin ETF flows for a second consecutive day on March 20. Butterfill stated that the situation arose due to lower ETF demand and increased outflows from Grayscale’s GBTC fund.

The GBTC fund hemorrhaged $1.086 billion in outflows so far this week, whereas BlackRock’s iShares Bitcoin Trust saw substantial inflows of $527 million over the same period, emerging as the best performer.


Excluding the outflows from GBTC and the smaller BITO ETF, the other spot Bitcoin funds attracted a combined $605 million in fresh capital. However, accounting for the losses from GBTC and BITO, the overall net flows across all Bitcoin ETFs reached $491 million this week.

Despite the waning demand for spot Bitcoin ETFs this week, some prominent Bitcoin bulls pushed back against the bearish sentiment emerging from the pullback.

“Pullback For Ants”

Despite the pullback from last week’s all-time highs, some Bitcoin bulls remain unfazed by the cooling market sentiment. In a recent Bloomberg interview, Anthony Pompliano dismissed the decline as “a pullback for ants” when viewed against Bitcoin’s historical volatility cycles. He noted that during past bull runs, it was common for Bitcoin to experience five or more 30% drawdowns before pushing higher.


“In a historical context, this is a very small drawdown in a bull market,” Pompliano stated, pointing out the current 15% decline from the $74,000 peak. Pompliano mentioned that expectations for outsized upswings must all be tempered by the reality of downside risk.

Jan3 CEO Samson Mow dismissed the notion that negative sentiment would trigger further Bitcoin declines, arguing that “ultimate scarcity and unlimited demand don’t care about your sentiment.” His statement highlighted Bitcoin’s fundamental value proposition as a fixed-supply asset in the face of theoretically infinite fiat currency creation. 

On the Flipside

  • It is unreasonable to expect BTC ETFs to record positive flows every day.
  • There is ongoing debate on whether institutional involvement is “good” for Bitcoin, with Arthur Hayes recently theorizing that the ETFs could be an attempt by the state to capture BTC.
  • The consistent outflows from Grayscale largely represent a flight to other BTC ETF providers with lower fees, according to X influencer Rip VanWinkle.

Why This Matters

Bitcoin ETF flows fluctuate, but that in isolation should not be taken as an indicator of market direction. Although the ETFs introduced a new element compared to previous cycles, it’s important to note that crypto investing remains inherently risky, and future outcomes are unpredictable.

Find out more on the current wave of negative Bitcoin sentiment here:

Bitcoin Braces for $60K Retest: Grayscale Outflows Top $642M

Mainstream Bitcoin acceptance takes another step forward after GPIF signals interest. Read more here:

Bitcoin’s Bid For Legitimacy: The Pension Funds Are Coming

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.