Bitcoin ETFs Raise $2.5 Billion in One Month, Close to Erasing Year-To-Date Losses

Bitcoin ETFs Raise .5 Billion in One Month, Close to Erasing Year-To-Date Losses
Bitcoin ETFs Raise .5 Billion in One Month, Close to Erasing Year-To-Date Losses

Bitcoin ETFs have raised nearly $2.5 billion over the past month, erasing nearly all of the year-to-date capital outflows and showing what Bloomberg Intelligence Analyst Eric Balchunas calls it “incredible strength” amid Bitcoin’s 40% price drop.

The March streak has been underscored by nine days of inflows exceeding $150 million, including a $458.19 million day on March 2 and consecutive $200 million days on March 16 and 17, according to SoSoValue data.

Weekly flows remained strong, with $787.31 million in the last week of February, followed by $568.45 million and $767.33 million, $95.18 million and $167.23 million in almost four weeks of March, bringing total inflows last month to approximately $2.5 billion.

The sustained inflows challenge Bitcoin’s price weakness (the leading cryptocurrency remains 40% below its October 2025 all-time high of $126,080) and stand in stark contrast to traditional assets, according to data from CoinGecko.

“After a brutal five-week run of capital outflows in February, March 2026 saw the return of a ‘structural supply’,” said Markus Levin, co-founder of the DePIN XYO project. Decipher. “US-listed Bitcoin ETFs attracted nearly $2.8 billion in net inflows in mid-March, effectively neutralizing earlier losses.”

When gold fell 40% about a decade ago, Balchunas noted, about a third of his investors pulled out. “Bitcoin is simply abnormal,” he said, highlighting the relative strength of the leading cryptocurrency considering growing macroeconomic and geopolitical uncertainty.

Bitcoin’s resilience comes as ETFs increasingly dominate broader markets.

ETFs now account for 37% of total US stock market volume, the highest monthly average on record, The Kobeissi Letter published on Wednesday. That figure has increased 13% since the beginning of 2025, surpassing the peaks seen during the 2020 pandemic crisis.

“Institutional investors are increasingly using ETFs as a primary tool to hedge, short sell, or reduce exposure to the broader market, rather than selling individual stocks,” The Kobeissi Letter wrote. “Record ETF activity indicates how aggressively hedge funds are repositioning as volatility intensifies.”

The decoupling indicates that Bitcoin is now trading as a “forward-looking liquidity asset,” valuing institutional positioning rather than short-term macro noise, unlike stocks and gold, Levin explained.

The growth of ETFs, in general, is due to their regulated nature, making them simple and easy to access, without custody issues, said Andri Fauzan Adziima, research leader at cryptocurrency exchange Bitrue. Decipher.

“For Bitcoin, this means enormous efficiency on the on-ramp: flows are rotating from gold ETFs to Bitcoin ETFs,” Adziima said, adding that this indicates that institutions are “treating Bitcoin as a core portfolio diversifier, supporting sustained billions in inflows and a tighter supply going forward.”

The shift in institutional positioning extends beyond Bitcoin ETFs.

Strategy has filed regulatory paperwork to acquire another $44 billion worth of Bitcoin (approximately 590,000 BTC at current prices) and a Morgan Stanley Bitcoin ETF is about to launch. Meanwhile, there are less than 1 million BTC left to be mined over the next 114 years.

Strategy Reveals $44 Billion Plan to Buy More Bitcoin, Boosted by MSTR and STRC Stock

For now, the surge in March inflows has positioned Bitcoin ETFs to fully recover their losses from the beginning of the year with a strong day. IBIT, BlackRock’s Bitcoin spot ETF, has already delivered a positive result for the year and is in the top 2% of all ETFs in terms of flows so far this year, according to Balchunas.

If this outlook continues, with a stabilized macro and geopolitical outlook, experts believe it could trigger a prolonged recovery for Bitcoin and the broader crypto market rather than another leg lower.

Investor optimism has improved, with users on the Myriad prediction market, owned by DecipherDastan’s parent company Dastan assigns a 45% chance of a widespread cryptocurrency rally this spring, up from 37% on March 23.

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