• It’s been a tough stretch for Bitcoin ETFs, and get this – the net inflows they saw this year are practically gone!
• But crypto asset managers aren’t giving up; they’re already eyeing the next big thing: altcoin ETFs, with names like Litecoin, XRP, Solana, and Dogecoin leading the pack.

The crypto market feels like it’s been hit by a bolt of lightning lately, especially as the broader market struggles to regain its footing.

And one area feeling the pressure most intensely? Exchange-Traded Funds (ETFs), which have been navigating a really rough patch.

Bitcoin ETFs struggle

If you dig a little deeper, you’ll see that the U.S. spot Bitcoin ETF market is really feeling the squeeze. Net inflows have seriously slowed to a trickle, struggling to build any real momentum.

Think about it: in February, there were only five days with positive inflows, and March? Just a single day so far.

The result? All those net inflows we saw at the beginning of 2025 have almost vanished. Fund values have taken a hit, dropping nearly 25% from their high point in late January.

Data from SoSoValue shows the cumulative net inflows are now just barely above water at $35.20 billion—practically the same as the $35.00 billion on day one of trading this year.

Community concerned

This downturn mirrors Bitcoin’s own price struggles, and it’s definitely got people wondering about investor confidence in the ETF space.

As one X user put it, 

“Looks like it’s been a wild ride for Bitcoin ETFs this year! Market trends sure know how to keep us on our toes.” 

Another user on X chimed in, 

“Looks like Bitcoin ETFs are taking a nosedive—erasing year-to-date gains is no small feat. Cumulative inflows hitting lows not seen since January? That’s a big red flag. Time to reassess those bullish narratives, folks.” 

While the total value of assets under management (AUM) for BTC ETFs has shown a slight bounce back, don’t be fooled—the underlying trend is still a worry.

Bitcoin’s recent 10% price jump has helped give the AUM a lift, but it’s really just masking those persistent net-negative outflows we’ve been seeing week after week.

Recent downturn

And get this: just recently, Bitcoin ETFs saw a whopping $371 million in net withdrawals on March 11th, marking a full week of straight capital leaving these funds.

This negative trend isn’t just limited to Bitcoin; Ethereum [ETH] ETFs are also feeling the heat, with $21.57 million in net outflows over the last five days.

So, it’s pretty clear that as Bitcoin ETFs face these increasing headwinds, attention is starting to turn towards other crypto investment options.

Will altcoin ETFs take the spotlight?

Word on the street is that a growing number of asset managers are now in a race to launch the very first altcoin ETFs, looking to broaden the market beyond just Bitcoin.

These planned funds are looking at including assets like Polkadot, Axelar, and Avalanche, signaling a wider interest in giving institutional investors more choices.

However, analysts are pointing to Litecoin [LTC], Ripple [XRP], Solana [SOL], and Dogecoin [DOGE] ETFs as the most likely candidates to get the green light from regulators.

If these altcoin ETFs are approved, they could really inject some new energy into the crypto investment world, potentially shifting the market landscape as Bitcoin continues to face its current challenges.