Spot Bitcoin exchange-traded funds (ETFs) in the U.S. recorded their third consecutive day of net outflows on March 5, with Valkyrie’s BRRR seeing the largest redemptions.
According to SoSoValue data, the 12 Bitcoin ETFs saw a total of $38.3 million in outflows on Wednesday. This follows withdrawals of $74.19 million on Monday and $143.43 million on Tuesday, extending the losing streak.
The bulk of the outflows came from Valkyrie’s BRRR, which saw $60.42 million in investor withdrawals. Other funds, like Invesco Galaxy’s BTCO and Bitwise’s BITB, faced smaller outflows of $9.94 million and $6.87 million, respectively.
However, BlackRock’s IBIT—the largest Bitcoin ETF by assets—helped cushion the blow, attracting $38.93 million in fresh inflows. This brings its total net inflows since launch to $39.66 billion. Meanwhile, the remaining eight Bitcoin ETFs recorded no activity for the day.
In total, trading volume across these Bitcoin ETFs stood at $3.27 billion on March 5.
Ethereum ETFs Also See Outflows
Ethereum ETFs also reversed course, recording $63.32 million in outflows on March 5 after briefly snapping their outflow streak with $14.58 million in inflows the previous day. All of Wednesday’s withdrawals came from Grayscale’s ETHE, the fund with the highest fees among Ethereum ETFs, while other Ethereum funds remained flat.
What’s Driving the Selling Pressure?
A major factor contributing to the ETF outflows appears to be uncertainty surrounding former President Donald Trump’s proposal for a U.S. Crypto Strategic Reserve.
The idea of holding Bitcoin and Ethereum as part of a national reserve initially fueled optimism in the crypto market. However, concerns over potential government control over decentralized assets have sparked debate among investors.
After an initial price boost, selling pressure returned, though the market has since rebounded. At the time of writing, Bitcoin is trading at $92,710, up 6.3% on the day, while Ethereum has gained 5.9%, reaching $2,299.
Market Outlook
Analysts expect continued volatility in the short term, with geopolitical tensions and trade uncertainties playing a key role. Bitcoin’s volatility index suggests that March could bring more price swings before potential stabilization in April, which may help ease selling pressure.
For now, all eyes remain on ETF flows and broader market sentiment as the crypto space navigates these fluctuations.
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