Bitcoin ETFs experienced $8.9 billion in outflows as the price of Bitcoin fell, but recent inflows of $1.5 billion indicate that demand may be recovering.
Bitcoin exchange-traded funds (ETFs) recently experienced their biggest drop in value since they became available in January 2024. About $8.9 billion was withdrawn from these funds during the recent market downturn, meaning many institutional investors now hold investments worth less than they paid. However, money is starting to flow back into these ETFs now.
Bitcoin ETFs See Largest Capital Exit Since Launch
Bitcoin’s price dropped below $70,000, leading to losses for institutions that had recently purchased it through new spot ETFs. Analyst Darkfost reports that investors withdrew around $8.9 billion from these Bitcoin ETFs as the price fell – the biggest outflow since the ETFs became available in January 2024.
As a researcher tracking these new Bitcoin ETFs, I’ve noticed something interesting: the average purchase price for investors in these ETFs is around $79,000. Because Bitcoin is currently trading below that price, a significant number of ETF investors are currently holding a losing position.
📉 Bitcoin ETFs experienced largest Drawdown since launch
People who own shares in Bitcoin ETFs are currently feeling some financial pressure, as the price of Bitcoin is lower than what many of them originally paid – around $79,000 per Bitcoin. This reflects the overall demand from investors in these ETFs.
💡 This metric should be considered as an…
— Darkfost (@Darkfost_Coc)
The $79,000 figure is just an average purchase price, not an exact record of every trade within the ETFs. However, it provides a good overall sense of when most investors bought in.
When Bitcoin’s price fell below $70,000, the value of Bitcoin held in exchange-traded funds (ETFs) decreased significantly. BlackRock’s iShares Bitcoin Trust (IBIT) experienced the biggest change, reducing its Bitcoin holdings by over 42,000 BTC from a high of more than 806,000 BTC.
This decrease is one of the biggest drops in Bitcoin holdings for an ETF since these products became available. Because IBIT is the largest Bitcoin ETF, its buying and selling activity often impacts overall interest from institutions.
ETF Inflows Signal Recovery as BTC Climbs Back Above $71K
Bitcoin has shown signs of recovery over the last five trading days, with about $1.5 billion flowing back into spot Bitcoin ETFs. BlackRock’s IBIT ETF is at the forefront of this increase.
The fund saw a significant $263 million in investments on March 2nd alone, and has now taken in a total of $882 million this week. This makes it the leading Bitcoin ETF by a considerable margin.
Other Bitcoin ETFs are also gaining popularity. FBTC from Fidelity saw $156 million in new investments this week, and BITB from Bitwise added $148 million. Notably, Grayscale’s GBTC, which had been experiencing consistent withdrawals, actually brought in $102 million during the same period.
Money is flowing back into Bitcoin ETFs, which could mean investors are becoming more optimistic. Nearly all of the first ten Bitcoin ETFs saw more money coming in than going out last week, and the beginning of this month showed the clearest signs yet of increased interest.
Bitcoin ETFs saw a net inflow of $458 million, with all twelve funds experiencing positive investment, according to Coinglass data. Total assets in these ETFs now total around $93.11 billion, and since their launch, they’ve accumulated roughly $55.8 billion in net inflows. Bitcoin’s price is also recovering, currently trading at $71,346 – a 6.52% increase over the last 24 hours – even with global geopolitical concerns.
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2026-03-04 21:33