Bitcoin Cash exchange-traded funds (ETFs) have fallen out of favor with investors and how.
The total dollar value of the net assets of the 11 spot ETFs stood at $77.58 billion as of June 9. This is the same level observed just after President Donald Trump’s victory in the presidential election in early November 2024.
That’s not to say ETFs haven’t made gains over the 19-month period. Hopes that Trump would deliver on his campaign promise of friendlier crypto regulation helped push bitcoin, as well as ETF assets, higher. Total net assets exceeded $90 billion in the week following this election victory and reached an all-time high of $169.54 billion in October 2025.
But since then, those post-election gains have been erased even as the Securities and Exchange Commission (SEC), under the Trump administration, abandoned several high-profile enforcement actions. The United States has established a strategic bitcoin reserve and, in addition, the Digital Asset Market Clarity Act, which aims to establish jurisdictional boundaries between the SEC and CFTC and give the industry legal clout, is moving forward in Washington.
In other words, the regulatory environment has never been better, but the reaction of investors has been to leave, resulting in a decline in net assets.
These ETFs saw a net outflow of more than $5 billion in four weeks. Cumulative net inflows since inception, which peaked at $62.77 billion in October 2025 when bitcoin was at its all-time high, have since declined by almost $9 billion to $53.77 billion, the lowest since August last year.
Analysts attribute recent ETF outflows to macroeconomic factors, particularly high inflation.
“ETF outflows reflect near-term pressure as inflation pushes the Fed toward a hawkish stance, while the on-chain supply crunch remains intact,” Binance Research said in a report shared with CoinDesk.
Market analyst and former 21Shares co-founder Ophelia Snyder said AI and other trending sectors of the financial market are draining capital from crypto.
“There are ETF outflows as investors become increasingly distracted by other narratives competing for attention and capital, whether AI, SpaceX or other high-profile growth topics. There is ongoing market nervousness around geopolitics, the Strait of Hormuz, US jobs data, inflation and broader macroeconomic uncertainty,” she said in an email.
