Spot Bitcoin ETFs in the United States recorded $296.18 million in net outflows for the week ending March 28. This ended a four-week inflow streak during which investors poured $2.2 billion into the funds. The sell-off was led by BlackRock's iShares Bitcoin Trust (IBIT), which saw a single-day outflow of $201.67 million - the largest since March 3.
What happened on Friday
On Friday, March 28, total outflows from spot Bitcoin ETFs reached $225.62 million - the largest single-day redemption in three weeks. BlackRock IBIT suffered a record-for-March outflow of $201.67 million, accounting for 89% of all Friday redemptions.
Among other funds, Bitwise Bitcoin ETF lost $18.60 million, while Ark Invest/21Shares shed another $5.35 million. Other issuers saw minimal changes, with Fidelity FBTC maintaining a neutral position.
Four-week inflow streak ends
Over the previous four weeks, investors had been actively building positions in Bitcoin ETFs, cumulatively investing $2.2 billion. This streak supported BTC's price in the $69,000-$74,000 range and created the impression of steady institutional demand.
The reversal at the end of March signals a shift in sentiment. The Fear and Greed Index dropped to 12 - its lowest reading since October 2023. Bitcoin ETF weekly trading volume fell to $14.26 billion from $25.87 billion earlier in the month.
What triggered the sell-off
Analysts point to several factors. First, a record $15.6 billion options expiry pushed BTC below $67,000, triggering stop-losses for institutional traders. Second, a new draft of the CLARITY Act proposing to ban stablecoin yield caused Circle and Coinbase shares to plummet.
Additionally, rising oil prices (Brent above $100) and declining U.S. equity markets intensified the broader risk-off mood. Large funds that had been actively buying BTC now prefer to sell Bitcoin for dollars and wait for market stabilization.
Assets under management
Despite the outflows, total net assets across spot Bitcoin ETFs remain substantial at $84.77 billion, though this figure exceeded $90 billion just a week earlier. The $5+ billion decline is explained by both fund outflows and the drop in the underlying asset's price.
- BlackRock IBIT: remains the largest fund with AUM exceeding $38 billion despite Friday's outflow
- Fidelity FBTC: holds second place with AUM of approximately $15 billion
- Grayscale GBTC: continues its gradual loss of market share, AUM falling below $14 billion
BTC dominance rises because of panic
Despite the price decline, Bitcoin dominance rose to 55.9% - traders are fleeing altcoins for the relatively safer asset. Ethereum fell to $1,998, approaching the psychological $2,000 level, while Solana lost 4.1% in 24 hours.
The 18% decline in trading volume (to $95.99 billion versus the 30-day average of $108 billion) signals seller exhaustion rather than panic selling. This could set the stage for a technical bounce if the $66,000 support holds next week.
What to expect next
The coming week will be crucial in determining the market's direction. If ETF outflows continue, BTC could test support at $63,000-$64,000. However, historically, sharp single-day redemptions from BlackRock have been followed by a rebound within 3-5 trading days.
Investors will be closely watching macroeconomic data and the progress of the CLARITY Act, with a committee vote scheduled for the second half of April following Congress's Easter recess.
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