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Bitcoin ETFs end Q1 in the red as early outflows outweigh March gains

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Bitcoin ETFs end Q1 in the red as early outflows outweigh March gains

US-listed spot Bitcoin ETFs ended the first quarter of 2026 in negative territory. March did see a return of inflows, but that came only after two straight months of steady withdrawals.

Summary

  • US spot Bitcoin ETFs ended Q1 2026 with about $500 million in net outflows, as early-quarter redemptions outweighed March inflows of $1.32 billion.
  • Ether ETFs saw $769 million in quarterly outflows, while Solana funds attracted $213 million.

Figures from SoSoValue show that the funds added $1.32 billion in March and ended a dry spell that had lasted since October 2025. 

Yet the inflows were not enough to offset the heavy redemptions that occurred in January, when $1.61 billion was pulled from the funds. Subsequently, February saw further withdrawals of $207 million, leaving the quarter with roughly $500 million in net outflows.

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Outflows picked up pace as Bitcoin fell by more than 22% over the quarter, extending losses after a 23% drop in the final quarter of 2025. Consecutive declines across two quarters added pressure on investor positioning and fund flows.

Investor sentiment remained fragile even as capital returned in March. Readings from the Crypto Fear & Greed Index stayed under 20 for most of the month, a range tied to “Extreme Fear.”

Even under those conditions, ETF inflows picked up toward the end of the quarter. Some analysts link that resilience to continued institutional participation, despite uncertainty tied to geopolitical tensions in the Middle East. 

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However, trading activity slowed, with spot Bitcoin ETF volumes falling to around $79 billion in March, compared with $93 billion in February and $87 billion in January. By the end of the quarter, cumulative inflows into the segment reached close to $56 billion, while total assets under management stood near $87.5 billion.

Spot Ether ETFs recorded the largest quarterly losses among altcoins at about $769 million. These products have recorded three consecutive months of outflows after closing March with $46 million in net withdrawals.

XRP ETFs also recorded outflows in March with roughly $31 million exiting the funds. Earlier inflows kept the quarterly figure positive, with net additions of roughly $43 million.

Meanwhile, Solana ETFs brought in a combined $213 million over the quarter. Since their launch in October 2025, they have yet to post a month of net outflows.

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Crypto World

Former FTX engineer Nishad Singh agrees to $3.7M penalty in CFTC settlement

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Former FTX engineer Nishad Singh agrees to $3.7M penalty in CFTC settlement

Former FTX head of engineering Nishad Singh has agreed to pay a $3.7 million fine to resolve his case with the US commodities regulator.

Summary

  • Nishad Singh agreed to pay $3.7 million in disgorgement to settle CFTC charges tied to FTX’s collapse and misuse of customer funds.
  • The settlement includes a five-year trading ban and an eight-year registration ban, with regulators citing his cooperation in limiting further penalties.

Singh will pay a disgorgement of $3.7 million as part of a supplemental consent order for his role in the collapse of FTX and the misappropriation of user funds, according to an April 1 statement from the U.S. Commodity Futures Trading Commission.

As part of the supplemental consent order, he has also been handed a five-year ban on trading in markets and an eight-year registration ban that blocks him from obtaining a license to operate within the sector.

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CFTC enforcement director David Miller ruled out additional restitution or civil monetary penalties for now and said the current resolution reflects Singh’s cooperation with authorities.

“The defendant engaged in, and aided, significant violations of the Act and CFTC regulations as the former FTX head of engineering, and the consent orders reflect the severity of these violations,” Miller said.

A Bloomberg report noted that attorneys representing Singh said he was grateful the matter had been resolved and added that the regulator recognized his limited role in the underlying conduct.

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Singh was accused of personally misappropriating millions of dollars in assets as part of FTX’s collapse. The commission charged the former executive with two counts of fraud by misappropriation and aiding and abetting fraud.

Subsequently, he entered into the consent order and agreed to cooperate with the commission’s investigators.

As previously reported by crypto.news, Singh was also spared from prison and received three years of supervised release.

In the meantime, FTX founder and former CEO Sam Bankman-Fried has filed a pro se motion seeking a new trial in his federal fraud case.

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Bankman-Fried is currently serving a 25-year sentence on seven counts of fraud and conspiracy but has argued that key witness testimony was missing from his 2023 trial.

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Alabama Passes DUNA Act Granting DAOs Legal Status

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Law, DAO

The US state of Alabama has become the second US jurisdiction after Wyoming to grant decentralized autonomous organizations (DAOs) legal status under the DUNA Act.

The Decentralized Unincorporated Nonprofit Association (DUNA) Act (Senate Bill 277) was introduced in February by Republican Senator Lance Bell. The House passed it 82-7 with 16 abstentions on March 17, and has now been signed by Alabama Governor Kay Ivey, according to a16z Crypto.

Speaking about the bill’s passage, a16z Crypto’s head of policy and general counsel, Miles Jennings, said on Wednesday that “decentralized governance is essential to crypto’s future — it’s one of the core constructs in market structure legislation.”

The bill provides legal status and limited liability protections to DAOs, solving a long-unresolved question in crypto: How DAOs exist from a legal standpoint in the real world. 

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It gives decentralized communities “the certainty to build, govern, contract, and scale in the real world,” added Jennings. 

Full legal entity status for DAOs

To qualify, a DAO must have at least 100 members joined for a common nonprofit purpose, such as governing a blockchain network or smart contract system.

Governance can operate entirely through blockchain technology and smart contracts, and voting, proposals and consensus mechanisms can all be stored onchain.

These organizations will have full legal entity status, they can own property, sue and be sued, and enter into contracts, while individual members and administrators will be shielded from personal liability. 

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Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

“As federal crypto market structure legislation moves closer to becoming law, builders need effective domestic legal structures,” added Jennings. 

West Virginia DUNA Act awaits approval 

A similar DUNA bill (HB 5060), introduced by Representative Tristan Leavitt in February, passed the House on March 4 and is awaiting the governor’s signature in West Virginia. 

Wyoming’s DUNA Act was signed into law by Governor Mark Gordon in March 2024. The state approved the first legally recognized DAO in the United States in July 2021. 

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Over 13,000 DAOs exist worldwide with collective treasury assets under DAO control surpassing $24.5 billion as of 2025, according to CoinLaw. The average DAO treasury size is around $1.2 million, and Ethereum and its layer-2 networks host over 85% of DAOs, reported PatentPC in March.

Law, DAO
DAO treasury composition. Source: CoinLaw

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