The US Bitcoin Spot ETF Market Did Not Deliver What Was Expected in 2025! There Have Been Significant Outflows in the Last 30 Days! Here Are the Details

The US Bitcoin spot ETF market is experiencing a slowdown with a net outflow of $180 million in the last 30 days. This is one of the highest withdrawal rates since trading began in early 2024. This get dumped highlights a shift in investor sentiment due to the surge in market volatility and the collapse of cash carry trading.

Bitcoin ETF Cash and Carry Trade Eases: What Does It Mean for Investors?

Compared to the enthusiasm seen in 2024, Bitcoin ETFs performed poorly in 2025 and inflows have significantly slowed.

Despite a short net inflow increase of $700 million over the past five days, Bitcoin's price has struggled, dropping by approximately 10% to date. According to Farside data, total net inflows have reached $36.1 billion since its inception.

Resolving Volatility and Fundamental Trading

The two main factors triggering this exit are:

1. The extreme volatility of Bitcoin: Following President Donald Trump's inauguration and expectations of cryptocurrency-friendly policies, the price soared to a record level of 109,000 dollars in January, but dropped to 76,000 dollars by early March due to fears regarding Trump's tariff-based trade policies. Retail investors often react emotionally to such surges and sell their assets in risky environments.
2. The pullback of basic trading: Institutional investors were taking short positions in CME Bitcoin futures to benefit from cash and carry arbitrage while holding long positions in Bitcoin ETFs, aiming to profit from the futures price premium over spot prices. However, with arbitrage yields dropping to a record low of only 2% since the approval of the ETF, many investors are exiting this trade.

With the higher yields offered by US Treasury bonds, many institutional investors are turning to lower-risk assets instead of continuing Bitcoin arbitrage transactions.