Billions of dollars continue to pour into Bitcoin exchange-traded funds, even as Ethereum grapples with volatile flows. In the final days of March and into early April, U.S.-listed Bitcoin ETFs recorded sharp, sustained inflows, while Ethereum’s ETF sector struggled with consistent withdrawals.
Bitcoin funds led by BlackRock and Fidelity accounted for the lion’s share of inflows. On April 2, BlackRock’s IBIT saw a net gain of $115.9 million, while Ark’s ARKB added $130.2 million. Bitwise’s BITB brought in $33.4 million, and Fidelity’s FBTC posted $118.8 million. Altogether, the day’s net ETF inflows for Bitcoin totaled $218.1 million.
Yet, just one day later, on April 3, the tide turned. BlackRock pulled in $65.3 million, but other major funds saw outflows: Fidelity lost $23.3 million, Ark dropped $20 million, and Bitwise fell by $44.2 million. Grayscale’s GBTC bled $60.2 million, contributing to a net loss of $99.8 million that day.
Bitcoin Funds Maintain Dominance Despite Daily Swings
Over a 19-day period ending April 4, Bitcoin ETFs amassed a cumulative inflow of $36.2 billion. BlackRock’s IBIT alone pulled in $39.91 billion, averaging $129.2 million per day and reaching a peak single-day inflow of $1.12 billion.
Grayscale’s GBTC stood out for different reasons. With an outflow of $22.6 billion over the period, it consistently acted as a drag on total net flows. Its single-day maximum outflow hit $642.5 million, with an average daily bleed of $73.2 million.
Fidelity’s FBTC remained a consistent performer, tallying $11.49 billion in total flows and averaging $37.2 million per day. Other players, including Valkyrie, Franklin, and Invesco, contributed smaller amounts but remained mostly steady with low volatility.
Ethereum ETF Inflows Mask Underlying Instability
While Ethereum reported $704 million in net inflows over the past week, bridge data paints a different picture. Withdrawals from Ethereum bridges totaled $1.957 billion, against $1.353 billion in deposits—a net outflow of $603 million. This split between on-chain capital exits and ETF-driven entries reveals a fragmented narrative.
Despite these contradictions, Ethereum ETFs show more limited engagement. BlackRock’s ETHA led with a total inflow of $4.05 billion, followed by Fidelity’s FETH at $1.43 billion. However, Grayscale’s ETHE reported a significant outflow of $4.2 billion, making Ethereum’s ETF performance less consistent than Bitcoin’s.
Daily ETF flows mirrored this uncertainty. On April 2, Ethereum’s total ETF net outflow reached $51.3 million. The following day, another $3.6 million exited, adding to the week’s instability. Even days of marginal gains, such as March 28’s $4.7 million inflow, were isolated events.
Capital Flows Reflect Trust in Bitcoin Over Time
Ethereum’s price decline—falling from $3,630 in December 2024 to $1,794 in April 2025—parallels its turbulent net flow pattern. Notably, on January 8, a 208,000 ETH outflow coincided with a steep price drop to $3,326. Later, on February 23, ETH rebounded to $2,819 as 105,000 ETH entered exchanges—suggesting inflows often anticipate, rather than follow, price movements.
Despite these swings, Ethereum captured over 85 percent of total positive net inflows this past week. Alternative Layer-1 chains such as BSC, Solana, and Avalanche reported net capital outflows of $43.8 million, $25 million, and $29 million respectively, highlighting investor retreat from riskier ecosystems.
Grayscale’s ETHE fund, weighed down by its 2.50% fee, struggled to retain capital despite Ethereum’s central role in decentralized finance. Meanwhile, Layer-2 developments—like Vitalik Buterin’s multi-proof model—signal potential long-term stability, though market reactions remain muted.
With Layer-2s gaining traction and Bitcoin funds absorbing consistent inflows, investor preference appears increasingly aligned with established, high-liquidity platforms.
