After a prolonged period of withdrawals from bitcoin-related spot exchange-traded funds, there was a turnaround trend on March 25 when the instruments recorded net inflows of $15.7 million.
Dynamics of spot bitcoin-ETFs. Data: SoSoValue.
Spot exchange-traded funds have seen significant inflows over the past 24 hours, with Fidelity’s FBTC and BlackRock’s IBIT receiving the largest amounts, totaling $261 million and $35.5 million, respectively.
Meanwhile, converted GBTC from Grayscale continues to experience outflows, with investors withdrawing approximately $350 million in the last 24 hours.
Recent weeks have seen some waning of interest in spot bitcoin ETFs compared to when they were introduced to the US market. Over the past five days, outflows from such instruments have totaled $888 million, with the negative figure reaching $326.2 million on March 19.
At the time of writing, the total amount of bitcoins under management in the funds (excluding GBTC) is $30.62 billion.
Volume of assets under management of bitcoin funds, excluding GBTC. Data: The Block Data.
Trading volumes of spot ETFs based on digital gold continue to decline. As the latest report indicates, as of March 25, the current volume dropped to $6.1 billion, while at the beginning of the month it was about $10 billion.
Daily trading volume of bitcoin-ETF. Data: The Block Data.
The main reason for the often negative dynamics, according to the expert, is the sales of Gemini and Genesis. The information points to an estimated outflow of GBTC in the amount of $3.9 billion. However, Seyffarth assumes that this process will slow down in the coming weeks.
Previously, several analysts have also suggested that the pressure on GBTC sales may be easing.
In January, FTX sold 22 million shares of bitcoin fund Grayscale for about $908 million to pay off debts to creditors.
In March, Bitwise Chief Investment Officer Matt Hougan predicted that major investment platforms would start backing BTC-ETFs as early as “within the next few weeks.”
