$172M Bitcoin ETF Outflow Shock: Is the Crypto Rally Ending?

TLDR:

Table of Contents

Bitcoin ETFs experienced $172.89 million in net outflows last week
Outflows occurred on 4 out of 5 trading days between March 31 and April 4
Grayscale GBTC led with the highest outflows at $95.5 million
Bitcoin price fell below $76,500, dropping 9.3% in a single day
Market sentiment weakened following President Trump’s new tariff announcements

U.S. spot Bitcoin exchange-traded funds (ETFs) recorded another negative week as investors pulled out $172.89 million amid growing economic concerns. The outflows broke a positive two-week streak that had brought nearly $941 million into these funds. The retreat comes as Bitcoin posted its worst first-quarter performance since 2018.

Data from SoSoValue shows the 12 spot Bitcoin ETFs faced outflows on four of five trading days between March 31 and April 4. Monday saw $71.07 million exit these funds. Tuesday recorded even higher outflows at $157.64 million.

The midweek brought some relief. Wednesday was the only positive day with $220.76 million flowing into Bitcoin ETFs. However, the negative trend resumed on Thursday with $99.86 million in outflows and continued Friday with another $64.88 million leaving the funds.

Leading ETF Withdrawals

Grayscale’s GBTC experienced the largest outflows, losing $95.5 million over the week according to Faside data. WisdomTree’s BTCW followed with $44.6 million in withdrawals.

Other funds also saw money leave. IBIT lost $35.5 million, while BITB and ARKB saw outflows of $24.1 million and $22.2 million respectively. HODL recorded $4.9 million in net redemptions.

Not all funds saw withdrawals. Grayscale’s spot Bitcoin Trust, Franklin Templeton’s EZBC, and Fidelity’s FBTC bucked the trend with combined inflows of $61.8 million. The remaining Bitcoin ETFs showed flat performance over the five-day period.

The recent retreat represents approximately 700 Bitcoin being withdrawn from ETFs. This matches data from Ali_Charts showing investors pulling back as Bitcoin’s price fell 18.5% from its peak of $108,786.

#Bitcoin ETFs saw outflows last week, offloading nearly 700 $BTC! pic.twitter.com/lbbYBtTxdD
— Ali (@ali_charts) April 6, 2025

Broader Market Context

The crypto market dropped nearly 10% in a single day. Bitcoin fell 9.3%, dropping below $76,500. This price level is one that BitMEX co-founder Arthur Hayes had previously warned must be maintained to avoid deeper market losses.

The ETF outflows come during increased economic uncertainty. President Donald Trump announced new tariffs, called “Liberation Day” duties. The plan includes a flat 10% on all imports and higher rates for certain trading partners.

These tariff announcements have raised fears of a potential global trade war. Investor sentiment has weakened across markets as a result of these economic concerns.

Ethereum ETFs also felt the impact. They recorded $49.93 million in outflows last week. This marks six straight weeks of withdrawals totaling over $795 million for Ethereum-based funds.

Despite the recent outflows, Bitcoin ETFs have received $36.07 billion in investment since their launch in January 2024. These funds still maintain $94.45 billion in assets, representing about 5.65% of Bitcoin’s total market value.

The Fear & Greed Index, a measure of market sentiment, currently reads 40, indicating caution among investors. The total cryptocurrency market cap stands at $3.01 trillion as traders navigate both market volatility and potential economic policy impacts.

The Bitcoin exchange market processed $4.43 billion in trades on April 4 alone. This high trading volume suggests active repositioning by market participants during this period of uncertainty.

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