Bitcoin ETFs have set a new record by seeing long-term diminishing investments in their funds. According to CoinShares data digital asset investment products experienced $6.4 billion in customer money withdrawals during the past five weeks. 

Investor cash out reached $1.16 billion last week in the US to make up 93% of the total exodus. Since CoinShares started recording flows in 2015 this stands as their longest stretch of negative movement. 

Most money investors withdrew from Bitcoin which amounted to $5.4 billion during this time period. Ethereum and Solana lost $175 million and $2.2 million when investors withdrew their assets from these platforms.

Crypto ETFs & ETPs recorded another week of negative flows for the fifth consecutive time, with $1.7 billion in outflows!

The outflows were significant for #Bitcoin products, totaling $978 million. Another notable asset was $BNB product, which saw $528 million in outflows.
Last… pic.twitter.com/0T16cnVDhD

— CoinShares (@CoinSharesCo) March 17, 2025

Bitcoin ETFs See Mixed Fortunes Amid Market Selloff

XRP stands out from other digital assets because it reported $1.8 million in investments despite the gloomy market expectations. A minor portion of investors choose to buy specific cryptocurrencies while the market keeps experiencing general negative sentiment.

Bitcoin ETFs brought $912 million in investments since the beginning of 2022 while their total managed assets lost $48 billion. Investor faith took a direct toll through this significant wave of selling. The constant selling of Bitcoin ETFs and digital assets reflects important economic and worldwide situation changes. 

https://twitter.com/Investingcom/status/1901252984853397793?ref_src=twsrc%5Etfw

The uncertainty generated through Donald Trump’s presidential policies makes up most of the selling pressure on Bitcoin and other crypto assets. His heavy tariff policies make investors nervous about rising prices which leads to thoughts about interest rate increases and lowers the value of investment risk categories especially digital assets.

Security related factors make up part of this market drop. The latest $1.4 billion cyberattack on Bybit has worsened investor trust in digital assets because of ongoing security dangers. Big-name digital asset security issues make institutional investors stay away from investing in digital assets because of their concerns about security risks.

The Federal Reserve’s determined strategy to control inflation contributes strongly to the market drop. The Federal Reserve under Jerome Powell intends to maintain high interest rates which makes traders more reluctant to buy Bitcoin as a risky investment. The entire financial industry watches for the Fed’s decision which will appear this Wednesday because it could affect market attitudes.

Bitcoin’s Price Plummets Amid ETF Selloff

Another contributing factor is profit-taking. From early March until this drop Bitcoin ETFs accumulated assets for 19 weeks with a peak total of $2.9 billion. Investors saw this moment as an excellent chance to cash out and protect their profits in advance of expected market risks. The current Bitcoin downturn has intensified after investors placed $300 million worth of short positions during this period.

The NASDAQ is down 12%. If this correction turns out to be a bear market, and the correlation where a 12% decline in the NASDAQ equates to a 24% decline in Bitcoin holds, when the NASDAQ is down 20%, Bitcoin will be about $65K.

But if the NASDAQ goes into a bear market, history…

— Peter Schiff (@PeterSchiff) March 16, 2025

The continuous withdrawal of funds from Bitcoin has reduced its trading value in the market. The large outflow of exchange-traded products made Bitcoin price drop to $78,197 for the first time in four months and reduced its value by 27%.

Many investors remain in despite market trends. Germany became the latest country with capital inflows higher than $55 million since people spot this market dip to invest.

Economist Peter Schiff believes Bitcoin’s value decline will get worse if NASDAQ performs poorly. He believes Bitcoin yields to stock market declines because it shares high price movements with tech stocks. Schiff believes Bitcoin will decrease to about $65,000 when the NASDAQ benchmark undergoes a 20% slide.

The latest negative market attitude shows up often but Bitcoin and digital assets have returned to growth from past selling periods. Institutions want to invest in digital assets and Federal Reserve policy changes plus new rules may determine Bitcoin ETF trends.