Spot Bitcoin exchange-traded funds in the United States saw their net outflows nearly double as market experts expressed concerns over U.S. President Donald Trump’s proposed crypto reserve plan.
According to data from SoSoValue, the 12 Bitcoin ETFs recorded $143.43 million in net outflows on March 4—almost double the previous day’s net inflows of $74.19 million.
Fidelity’s FBTC and ARK 21Shares’ ARKB saw outflows of $46.08 million and $43.92 million, respectively. Franklin Templeton’s EZBC followed with net redemptions of $35.71 million. Other BTC ETFs contributing to the negative momentum included Bitwise’s BITB, Invesco Galaxy’s BTCO, and WisdomTree’s BTCW, which recorded outflows of $23.96 million, $16.47 million, and $13.07 million, respectively.
Grayscale’s mini Bitcoin Trust bucked the trend with a net inflow of $35.77 million, helping to offset some of the day’s outflows. The remaining five BTC ETFs saw no inflows or outflows.
These investment products saw a daily trading volume of $4.55 billion on March 4, while total net inflows since their launch stood at $36.72 billion.
Ether ETFs return to inflows
The nine Ethereum ETFs shifted back to net inflows on March 4, with $14.58 million entering the funds, ending an eight-day streak of outflows.
Fidelity’s FETH led the inflows with $21.67 million, while Grayscale’s ETHE and mini Bitcoin Trust funds recorded inflows of $10.71 million and $8.46 million, respectively. However, BlackRock’s IBIT stood out with $26.27 million in outflows. The remaining five ETH ETFs remained neutral on the day.
Trump’s crypto reserve plan triggers market concerns
The surge in Bitcoin ETF outflows coincided with market reactions to Trump’s weekend announcement regarding the creation of a U.S. Crypto Strategic Reserve. The proposed reserve would include a mix of crypto assets, primarily Bitcoin and Ethereum, with the goal of positioning the U.S. as the “Crypto Capital of the World.”
Despite its ambitious goal, the plan has faced significant pushback from the crypto community. Critics argue that it contradicts Bitcoin’s fundamental principle of decentralization, raising concerns that a currency designed to be free from government control could now be influenced by U.S. policies.
Anthony Pompliano, CEO of Professional Capital Management and a major crypto investor, expressed his opposition. In a letter to clients, he described the plan as a mistake the U.S. will regret.
“Even though Solana is our second-largest crypto holding, and many of the stocks I own are tied to altcoins, I still think this wide-ranging crypto reserve is a bad idea,” Pompliano wrote. He warned that the policy appears to be “a random mix of speculative assets” that would primarily benefit insiders and token creators at the expense of U.S. taxpayers.
Bitcoin, which surged 11% to an intraday high of $94,770 on Monday, March 3, retraced 13.8% to trade at $81,700 the following day as investors adopted a risk-off stance amid escalating trade tensions and concerns over the feasibility of the strategic reserve plan. Ethereum also declined, dropping 19% from its recent high to $2,055 on March 4. However, both crypto assets have since recovered, with Bitcoin (BTC) up 3.6% over the past day, trading at $87,163, and Ethereum (ETH) rising 3.6% to $2,180.
Bitcoin’s struggles in 2025
Uldis Teraudklans, chief revenue officer at Paybis, highlighted Bitcoin’s struggles this year. He noted that Bitcoin’s price has dropped as much as 11.47% year-to-date, whereas gold, facing similar economic uncertainty, has gained 10.65% over the same period.
Referring to a Bank of America survey, which found that 58% of fund managers still view gold as a reliable store of value—especially in case of a trade war—while only 3% trust Bitcoin, Teraudklans remarked that “this year, Bitcoin has proven more reactive to macroeconomic trends, including trade wars and interest rate fluctuations.” He pointed out that with Wall Street firms now heavily exposed to Bitcoin, liquidity flows have made it more volatile.
February was particularly challenging, with Bitcoin plunging 17.39%—its worst February since 2014 and the only negative one in a post-halving year. Teraudklans attributed this to declining institutional appetite, trade tensions, and Bitcoin’s increasing correlation with the S&P 500.
On Bitcoin’s long-term role, Teraudklans stated, “Bitcoin has never been a safe-haven asset—only an aspirational one.” He acknowledged that every market cycle reignites debates about Bitcoin’s viability as a hedge but emphasized that “Bitcoin has consistently been a risk asset, following a long-term trajectory toward becoming a safe-haven, risk-off asset.”
“Only when Bitcoin reaches the market capitalization of gold can we seriously evaluate whether it can replace it as a safe-haven asset,” he concluded.
