Bitcoin ETF Inflows Rise, Fidelity Leads BlackRock

On Monday, March 25, Bitcoin ETFs experienced positive inflows, led by Fidelity’s FBTC with $261 million surpassing BlackRock’s IBIT

On Monday, March 25, the nine spot Bitcoin exchange-traded funds (ETFs) combined reported net positive inflows, following a week in which they experienced significant withdrawals. It is interesting to note that the Fidelity FBTC Bitcoin ETF surpassed BlackRock’s IBIT in terms of the total contributions received.

Bitcoin ETF Net Inflows

Fidelity’s FBTC cryptocurrency recorded inflows totaling $261 million on Monday, making it the apparent winner of the competition. On the other hand, BlackRock’s IBIT received a positive response, leading to inflows of $35 million.

The Grayscale Bitcoin Exchange-Traded Fund (GBTC) has continued to generate a substantial amount of outflows, which currently stand at $350 million as of Monday. On the other hand, several market observers have considered the possibility that these GBTC outflows will eventually slow down.

James Seyffart, a strategist at Bloomberg, stated that bankruptcy was most likely the cause of the recent outflows, which primarily resulted from sales made by Gemini and Genesis. Seyffart thinks that this tendency will significantly slow down.

It is important to note that Gemini and Genesis had around 68 million shares of GBTC. Furthermore, Seyffart contends that there was unquestionably a self-serving motivation behind the decision to liquidate these investments at NAV.

The wealth desks of big banks are reportedly reporting a significant rise in demand from customers for Bitcoin ETF, as reported by QCP Capital.

In addition, there has been a discernible rise in requests for structured products such as accumulators and FCNs (financial contracts for differences).

An increasing number of investors are interested in acquiring exposure to Bitcoin through traditional financial instruments, as evidenced by the increase in demand for Bitcoin ETF.

Asset managers are reportedly adding Bitcoin allocations to their portfolios to enhance diversification. This illustrates the potential of cryptocurrencies as a potentially leveraged alternative asset class.

Furthermore, beginning next week, the Securities and Exchange Commission will receive 13F forms from institutional investment managers because they are due to submit them.

Through this, we will have an understanding of the entities that have been purchasing exchange-traded funds (ETFs) that are based on Bitcoin.

On Monday, the price of Bitcoin climbed back above $70,000 as a result of net inflows into exchange-traded funds (ETFs). With a market worth of $1.387 trillion, Bitcoin (BTC) trades at $70,533, representing a 5.5% increase from its previous price.