BITCOIN ETFS SEE POSITIVE FLOWS; BTC HITS $71K 

After experiencing outflows for five consecutive days, spot Bitcoin exchange-traded funds (ETFs) are witnessing a return to positive net inflows.

For the first occasion since March 15, the collective net inflow into the latest series of spot Bitcoin ETFs has turned positive.

On March 25, there was a significant reversal with a net inflow of $15.4 million, countering a recent trend that saw net outflows totaling $887 million in the previous week.

Despite being the smallest net inflow since January 26, this development indicates a reversal of fortune as Bitcoin’s value climbs back up after its dip before the halving event.

Bitcoin ETFs Show Positive Momentum

According to early reports by Farside Investors, Grayscale’s GBTC experienced a substantial $350 million outflow on March 25, defying analysts’ expectations that outflows would decrease, which continued to influence the overall net ETF flows negatively.

Since converting its GBTC fund into a spot ETF in mid-January, Grayscale has lost 273,335 BTC. The fund’s remaining 347,552 BTC are now valued at $24.7 billion in assets under management.

The flow data for today is notably bolstered by a $262 million inflow into Fidelity’s FBTC fund, which boasts an assets under management (AUM) total of $7.2 billion.

Meanwhile, BlackRock, a leading figure in the sector, recorded a relatively modest inflow of $35.5 million, significantly below its norm. Its IBIT fund’s AUM stands at $13.4 billion, yet combined, they still fall short of Grayscale’s holdings.

Eric Balchunas, an ETF analyst for Bloomberg, noted that both BlackRock and Fidelity have seen 50 consecutive days of inflows, a phenomenon he described as “unprecedented for a newly launched ETF.”

As Bitcoin’s price soared to $71,000 in late trading on March 25, maintaining its gains and trading at $70,641 in the Tuesday morning Asian trading session, the trend in ETF flows shifted.

Adjustments to Ethereum ETF Approval ChancesInsiders have once again adjusted the likelihood of approval for spot Ethereum ETFs. Eric Balchunas commented on March 26, “We’re sticking to a 25% chance, though it’s a rather gloomy 25%.”

He added, “The absence of action appears intentional rather than due to delay. There’s no positive feedback or intelligence to be found anywhere. Although I’m hoping for approval, the prospects don’t seem promising.”

Grayscale’s chief legal officer, Craig Salm, remains undaunted, asserting his belief in the ETFs’ eventual approval and stating:

“The perceived lack of regulatory engagement shouldn’t be seen as predictive of any particular outcome. The issues have been resolved, and the considerations for spot BTC and ETH ETFs are fundamentally the same.”

Read more from the blog

News

3 May 2023

StoneBlock CEO: Nervous investors will be eliminated from the market

News

22 Apr 2024

ANIMOCA BRANDS HOLDS $558M IN CRYPTO ON BALANCE SHEET 

News

22 Apr 2024

CRYPTOJACKER ACCUSED OF $3.5M FRAUD AGAINST TWO CLOUD PROVIDERS