Bitcoin ETFs have recorded two consecutive months of outflows, driven by dwindling retail interest in cryptocurrencies.
Slowdown in Bitcoin ETF Inflows
According to analysts at Matrixport, while total year-to-date inflows stand at $1.05 billion, much of this amount is attributed to January's influx of $5.3 billion. Since then, inflows have slowed, with March seeing net outflows.
Impact on Cryptocurrency Market
Analysts point out that retail investors have been less active in the crypto market compared to previous cycles, which may be limiting demand for Bitcoin ETFs. With muted retail speculation, inflows are not showing strong momentum. Moreover, Bitcoin ETFs are trailing other investment options, such as gold, which continues to reach new all-time highs.
Future of Bitcoin ETFs and Economy
Analysts at QCP Capital highlight that markets are now focused on President Donald Trump's upcoming 'Liberation Day' announcement on April 2, where new reciprocal tariffs are expected to dominate the agenda. This could exacerbate recession fears and further impact risk assets, including Bitcoin.
Interest in Bitcoin ETFs continues to wane amid weak retail demand, while market focus shifts to broader economic issues and policy changes.
