Spot Bitcoin Exchange-Traded Funds See Net Inflow Following Five Days of Outflows

Ruholamin Haqshanas

Ruholamin Haqshanas

Last updated:

March 26, 2024 06:08 EDT | 2 min read

Spot Bitcoin Exchange-Traded Funds See Net InflowSpot Bitcoin exchange-traded funds (ETFs) experienced net inflows yesterday, breaking a streak of five consecutive days of outflows.

According to data from SoSo Value, spot Bitcoin ETFs saw a net inflow of $15.7 million on Monday

This reversal follows a series of single-day outflows last week.

The largest outflows occurred on March 19 and March 20, with $326 million and $262 million leaving the funds, respectively

However, the pace of net outflows gradually slowed down later in the week, with $94 million withdrawn on Thursday and $52 million on Friday.

Fidelity Leads Spot Bitcoin ETF Inflows

Among the major players in the market, Fidelity’s FBTC stood out with the highest single-day net inflow of approximately $261 million, as reported by SoSo Value

BlackRock’s IBIT also fared well, witnessing an inflow of roughly $35.5 million

However, Grayscale’s GBTC experienced a single-day net outflow of $350 million.

The fervor surrounding spot Bitcoin ETFs has somewhat subsided in recent days, compared to the initial excitement that accompanied their market debut

Bitcoin ETF Flow – 25 March 2024

All data in. Net inflow day after outflows last week pic.twitter.com/Zk3EQE3Hws

— BitMEX Research (@BitMEXResearch) March 26, 2024

Over the past two weeks, the assets under management of spot Bitcoin ETFs, excluding GBTC, have plateaued at around $30.62 billion.

The recent net inflow into spot Bitcoin ETFs indicates renewed investor interest and confidence in these investment vehicles

Despite the temporary decline in popularity, the overall market sentiment remains positive, with investors recognizing the potential of Bitcoin as a valuable asset.

Bitcoin Rallies as LSE Announces ETN Debut

The price of Bitcoin has surged above the $71,000 mark following news that the London Stock Exchange plans to introduce Exchange-Traded Notes (ETNs) for BTC and ETH in May.

The decision follows the exchange’s previous announcement that it would accept applications for crypto ETNs during the second quarter of this year.

According to the notice released by the LSE, companies interested in listing their Bitcoin and Ethereum ETNs on the new market can begin submitting their applications starting from April 8, marking a significant step forward for the mainstream adoption of digital assets.

While both ETFs (exchange-traded funds) and ETNs offer exposure to a collection of assets, they differ in structure

ETFs represent partial ownership of the underlying assets, similar to a basket of stocks. On the other hand, ETNs function more like unsecured debt notes issued by a bank

In a recent note, crypto asset trading firm QCP Capital also revealed that asset managers continue to add Bitcoin allocations as a “portfolio diversifier.”

Additionally, requests for structured products such as Accumulators and FCNs have flooded in, revealing a strong appetite for diversifying investment portfolios with BTC, the Singapore-based crypto firm wrote

⁠”Anecdotally, wealth desks at major banks have been pleasantly shocked at the tremendous demand from clients for BTC spot ETFs, along with requests for structured products like Accumulators and FCNs.”

QCP even said it expects the leading cryptocurrency to maintain momentum, breaking all-time highs and potentially reaching the coveted $100,000 mark

It noted that amidst the unpredictable nature of the market, Bitcoin’s ability to offer potential returns independent of traditional assets has become an attractive proposition for these managers.

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