• The Bitcoin ETF faces relentless capital outflow pressure, with inflows nearly wiped out in 2025.
• Asset managers are pushing for altcoin ETFs, with Litecoin, XRP, Solana and Dogecoin being top contenders.

The cryptocurrency market is being hammered as the broader market struggles to recover previous highs.

The hardest hit area is the Exchange Traded Fund (ETF) space, which is in the midst of a prolonged downturn.

Bitcoin ETF Struggles

In-depth analysis of the market shows that the US-listed Bitcoin ETF spot market has witnessed a sharp decline, with inflows struggling to regain growth momentum.

February had only 5 days of positive inflows, while March to date has had just 1 day.

As a result, the YTD inflows have nearly been wiped out, with the fund's AUM declining by nearly 25% from the January peak.

According to SoSoValue data, the current cumulative inflows stand at $35.20 billion—just slightly above the $35 billion recorded on the first trading day of the year.

Community Concerns

This downturn reflects the price difficulties of Bit, raising concerns about investor sentiment in the ETF space.

An X account commented,

"Looks like the Bit ETF is going through a tumultuous journey this year! The market trends certainly have us on high alert."

Additionally, another X user-added,

"Seems the Bit ETF is in free fall—wiping out YTD gains is no small feat. Cumulative inflows touching lows not seen since January? That's a worrying sign. Time to re-evaluate those bullish scenarios, folks."

While there has been a slight recovery in the total assets under management (AUM) of the BTC ETFs, the underlying trend remains concerning.

The recent 10% price rise in Bit has contributed to this increase, but it masks the continuous negative net outflows recorded in recent weeks.

Recent Downturn

Recently, the Bit ETF has also experienced a net outflow of $371 million on March 11, marking the 7th consecutive day of capital outflows.

This downward trend is not limited to BTC, as the Ethereum ETF [ETH] has also struggled, recording a net outflow of $21.57 million over 5 consecutive days.

Needless to say, as the Bit ETF faces increasing challenges, attention is shifting towards alternative cryptocurrency ETFs.

Can Altcoin ETFs Take the Spotlight?

According to reports, a growing number of asset managers are racing to introduce the first altcoin ETFs, in an effort to diversify the market beyond BTC.

The proposed funds include investments in assets like Polkadot, Axelar and Avalanche, reflecting a broader interest in expanding institutional investment options.

However, analysts suggest that the most likely candidates for approval are ETFs for Litecoin [LTC], Ripple [XRP], Solana [SOL] and Dogecoin [DOGE].

If approved, these funds could breathe new life into the cryptocurrency investment landscape, potentially reshaping market dynamics amid the current difficulties faced by Bit.