Bitcoin ETFs have experienced a second consecutive month of net outflows, signaling a loss of momentum after a strong start to the year. While total inflows for 2025 stand at $1.05 billion, analysts at Matrixport highlight that the majority of this came from January’s $5.3 billion surge. Since then, inflows have slowed considerably, with March witnessing net outflows as retail interest in Bitcoin ETFs remains tepid.

The slowdown is attributed to weak retail participation in the crypto market, which has not reached the speculative levels seen in previous cycles. Analysts suggest that with retail traders staying on the sidelines, demand for Bitcoin ETFs has struggled to maintain momentum. Furthermore, Bitcoin ETFs have underperformed compared to alternative investment options such as gold, which continues to hit new all-time highs.

Broader market conditions are also weighing on investor sentiment, with economic uncertainty and geopolitical factors influencing risk assets. Analysts at QCP Capital point out that markets are closely watching former President Donald Trump’s anticipated “Liberation Day” announcement on April 2, which could introduce aggressive trade policies. With consumer confidence at a 12-year low and equities under pressure, concerns over a potential recession could further dampen enthusiasm for Bitcoin and other high-risk investments.