Bitcoin ETFs Face Continued Outflows, Net Inflows Nearly Vanish in 2025

Asset managers push for alternative ETFs, with Litecoin, XRP, Solana, and Dogecoin as top contenders.

The Crypto Market is captivated by lightning as the broader market strives to reclaim previous highs.

The struggling sector remains that of exchange-traded funds (ETFs), which have been in a prolonged slump.

Bitcoin ETFs Struggle

A deeper look into the market reveals that the U.S. spot Bitcoin [BTC] ETF market is facing a sharp decline, with net inflows struggling to gain traction.

Only five days of positive inflows were recorded in February, while March has thus far seen just one day.

As a result, total net inflows since the start of 2025 have nearly evaporated, with fund values dropping nearly 25% from the peak in late January.

According to Sosovalo data, the cumulative net inflow currently stands at $35.2 billion, just above the $35 billion recorded on the first trading day of the year.

Community Concerns

This malaise reflects the struggles of Bitcoin’s price, raising concerns about investor sentiment in the ETF space.

In a related comment, a prominent X account remarked,

“It seems like a wild ride for Bitcoin ETFs this year! The market trends certainly know how to keep us on our toes.”

Adding to the competition, another X user noted,

“It looks like Bitcoin ETFs are struggling – gradual gains are no small feat. Accumulated inflows at a low not seen since January? That’s a big danger signal. Time to reassess those bullish narratives, folks.”

Despite a slight recovery in the total asset value under management (AUM) of BTC ETFs, the underlying trends remain concerning.

In recent weeks, a 10% rise in Bitcoin’s price contributed to this uptick, but it masks the continued net negative outflows recorded in recent weeks.

Recent Economic Slump

Recently, Bitcoin ETFs experienced a net withdrawal of $371 million on March 11, marking the seventh consecutive day of capital outflow.

This downward trend extends beyond BTC, as Ethereum [ETH] ETFs are also struggling, with $21.57 million in net outflows over five consecutive days.

Needless to say, as Bitcoin ETFs face increasing challenges, the spotlight is shifting towards alternative cryptocurrency funds.

Will Altcoin ETFs Draw Attention?

Reportedly, an increasing number of asset managers are competing to introduce the first Altcoin ETF, aimed at diversifying beyond BTC.

The proposed funds include holdings in assets such as Polkadot, Axelar, and Avalanche, reflecting a broader interest in expanding institutional investment options.

However, analysts suggest that the most likely contenders to gain regulatory approval are Litecoin [LTC], Ripple [XRP], Solana [SOL], and Dogecoin [DOGE] ETFs.

If approved, these funds could inject new momentum into the crypto investment landscape, reshaping market dynamics amidst ongoing struggles.