Bitcoin ETF Inflows Surge
Bitcoin ETF Inflows Rebound
Following five consecutive weeks of outflows, totaling over $5.3 billion since mid-February, US spot Bitcoin ETFs experienced a significant turnaround this week, recording net inflows of $744 million. This marks a strong recovery, particularly given the record $3.5 billion outflow in February.
The rebound was particularly noticeable on Monday, March 17th, with $274 million in inflows—the highest daily figure in over a month. This surge suggests institutional investors are returning to the Bitcoin market as macroeconomic uncertainties seem to be easing.
Recovering from Losses
The sharp sell-off in February was largely attributed to institutional investors liquidating holdings amidst market volatility and changing macroeconomic conditions. However, the recent inflow suggests a shift in sentiment.
BlackRock's iShares Bitcoin ETF (IBIT) led the charge, with inflows reaching up to $150 million on Friday. In contrast, Grayscale's GBTC continued to see outflows. The positive trend spanned six consecutive days.
- Monday, March 17: $274 million inflow
- March 21: $83.09 million inflow
- BlackRock's IBIT: Up to $150 million in positive flows on Friday.
- Grayscale's GBTC: Continued outflows, losing $21.9 million on Friday.
While some experts view this resurgence as a positive sign, others remain cautious. Analyst Kyle Chasse points to potential arbitrage strategies used by hedge funds, suggesting the inflow doesn't fully reflect genuine buyer interest. He suggests that the volatility may persist until "real buyers" step in.
Market Outlook
Bitcoin is currently trading around $84,148, slightly down in the last 24 hours. Despite the positive ETF flow, this price action suggests that the market remains cautious. Ethereum ETFs, meanwhile, continue to experience outflows.
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