Spot Bitcoin ETF inflows unlikely to rise anytime soon as retail activity stays low, analysts say

Bitcoin ETFs posted a second consecutive month of net outflows, with inflows slowing as retail interest remains weak.

Bitcoin ETFs have lost momentum after a strong January, with outflows continuing for a second month as retail interest stays weak and investor enthusiasm fades.

In a recent research post on X, analysts at blockchain firm Matrixport noted that while total year-to-date inflows stand at $1.05 billion, this is largely due to a strong January, when funds saw a $5.3 billion surge. Since then, inflows have slowed, with March seeing net outflows.

“Bitcoin ETFs remain heavily reliant on favorable funding rates and arbitrage opportunities. A meaningful pickup in Bitcoin ETF inflows appears unlikely in the near term.”

Matrixport

Retail investors have not been as active in the crypto market compared to previous cycles, which could be limiting demand for Bitcoin ETFs, the analysts suggest, adding that with retail speculation in crypto still muted, inflows “are not showing strong momentum.”

Moreover, Bitcoin ETFs are trailing other investment options, with recent performance falling behind proxy assets like gold, which keeps reaching new all-time highs.

As analysts at QCP Capital noted in a Telegram post that markets are now focused on President Donald Trump’s upcoming “Liberation Day” announcement on April 2, where he is expected to unveil new reciprocal tariffs. The analysts pointed out that with consumer confidence at a 12-year low and equities already under pressure from a 4-5% weekly drawdown, aggressive trade policies could deepen recession fears and weigh further on risk assets, including Bitcoin (BTC).