March has proven to be a brutal month for U.S. spot Bitcoin ETFs. While most funds are seeing massive outflows, only one ETF is standing tall amid the chaos: Grayscale’s Bitcoin Mini Trust (BTC). Unlike its competitors, this fund managed to attract new investments, while others bled capital at an alarming rate.

Bitcoin ETFs Are Deep in the Red

According to Farside Investors, nearly all U.S. spot Bitcoin ETFs have suffered major net outflows. The hardest hit? BlackRock’s iShares Bitcoin Trust ETF (IBIT), which saw over $552 million in outflows, with only $84.6 million in new inflows to offset the damage.

Only One Bitcoin ETF in the Green This March – What’s Going On? — Source: Farside Investors

Things aren’t looking much better for Fidelity’s Wise Origin Bitcoin Fund (FBTC), which recorded $517 million in outflows against a modest $136.5 million in new investments. Even Grayscale’s original Bitcoin Trust ETF (GBTC) wasn’t spared, losing over $200 million with zero new investments coming in.

The only ETF bucking the trend is Grayscale’s Bitcoin Mini Trust ETF (BTC). Unlike its struggling counterparts, this fund has not experienced any outflows and even managed to secure $55 million in new investments this month.

Total Losses Near $1.3 Billion in March

In just the first 17 days of March, U.S. spot Bitcoin ETFs lost a staggering $1.6 billion, while new inflows totaled only $351 million. That means a net loss of nearly $1.3 billion—a clear signal that investors are pulling back from the Bitcoin ETF hype.

This poor performance aligns with the wider bearish sentiment in the crypto market. According to CryptoQuant CEO Ki Young Ju, the Bitcoin bull run is officially over. He predicts that Bitcoin could enter a year-long sideways or downward trend, citing on-chain data that suggests whale investors are offloading their holdings at relatively low prices while liquidity is drying up. This indicates that many investors are preparing for an extended bear market.

Does This Mean Bitcoin ETFs Are Doomed?

While the numbers may look grim, this isn’t the first time Bitcoin has faced a major correction. The market has survived countless crashes before, and seasoned investors know that Bitcoin operates in cycles. For long-term holders, this could even be an opportunity to accumulate at lower prices.

It’s also worth taking a step back to see the bigger picture. Over the past few months, Bitcoin ETFs have performed exceptionally well, raking in a net inflow of $35.58 billion.

However, the initial euphoria surrounding spot Bitcoin ETFs appears to be fading. Whether this decline is temporary or the start of a prolonged downturn depends largely on macro-economic trends and the broader sentiment within the crypto industry. Will Bitcoin ETFs regain momentum, or is this just the beginning of a painful shakeout? Stay tuned.

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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.