The Coin Rise 2025-03-16 12:30:18

Bitcoin ETF Struggle as Net Inflows Stagnate, Altcoin ETFs Seek Spotlight

After a strong start to the year, U.S.-based spot Bitcoin ETF funds are facing a slowdown, with net inflows nearly returning to where they began in early January. According to SoSoValue data, cumulative inflows now stand at $35.20 billion, only $200 million higher than on January 2, reflecting a significant cooling of investor enthusiasm. The decline is largely attributed to five days of net positive inflows in February and only a single day of gains in March, suggesting that the initial wave of capital allocation into these funds may have reached its peak. Bitcoin ETF Inflows Nearly Wiped Out As Bitcoin’s price struggled through February, the total value of Bitcoin ETF assets under management (AUM) has dropped nearly 25% from its all-time high at the end of January. “Many of the investors who were eager to gain exposure to digital assets through ETFs have already entered the market,” explained BRN analyst Valentin Fournier. He added that for inflows to pick up again, either fresh demand must emerge or a broader market catalyst is needed. Interestingly, while Bitcoin’s price has gained about 10% since Tuesday, boosting ETF valuations slightly, the funds themselves continue to log net-negative outflows, indicating that existing investors may still be taking profits or reallocating capital elsewhere. Altcoin ETFs Race for Regulatory Approval As Bitcoin ETF funds struggle to maintain momentum, asset managers are now shifting focus toward launching altcoin ETFs, hoping to attract fresh capital into the crypto investment space. Firms have also proposed funds tracking Polkadot (DOT), Axelar (AXL), Avalanche (AVAX), and other altcoins, aiming to capture interest in the broader digital asset market. Among the contenders, Litecoin, XRP, Solana, and Dogecoin ETFs are viewed as the most likely to receive regulatory approval, given their relatively higher market adoption and liquidity. This push for altcoin ETFs reflects a broader diversification trend in the crypto investment landscape, as institutional and retail investors alike look beyond Bitcoin for new opportunities. However, approval from regulators remains a hurdle, with no clear timeline on when—or if—these funds will get the green light. The post Bitcoin ETF Struggle as Net Inflows Stagnate, Altcoin ETFs Seek Spotlight appeared first on TheCoinrise.com .