The US Bitcoin ETF market is experiencing a slowdown, with a net outflow of $180 million over the past 30 days. This is one of the highest withdrawal rates since trading began in 2024.
Bitcoin ETF and Its Market Impact
In 2025, compared to the enthusiasm of 2024, Bitcoin ETFs have seen inflows slow significantly. Bitcoin’s price remains under pressure, down about 10% year to date despite a brief $700 million net inflow surge over the past five days.
Causes and Consequences of Volatility
The main factors causing market changes include:
1. Bitcoin’s extreme volatility: After reaching a record high of $109,000 in January, the price fell to $76,000 in March. This triggered an emotional reaction from retail investors in risky environments. 2. Pullback from fundamental trading: Institutional investors are exiting arbitrage trades as arbitrage returns have fallen to a record low of just 2%.
The Future of Bitcoin Arbitrage Deals
US Treasury bonds offer higher yields, attracting institutional investors who prefer lower-risk assets. This reduces interest in Bitcoin arbitrage transactions.
The financial shifts in the Bitcoin ETF market highlight the importance of adapting investment strategies to volatility and prioritizing investment safety.
