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Highlights
- Fidelity trumps BlackRock for the second day in terms of net inflows.
- The GBTC outflows have slowed down to $212 million on Tuesday.
- Bitwise CIO expects strong ETF demand going ahead as wealth markets increase their risk appetite.
The inflows into spot Bitcoin ETFs bounced back strongly on the second day of the week soaring past $400 million once again. This comes as a healthy development with the entire last week seeing strong outflows from Bitcoin ETFs after heavy GBTC liquidations.
Fidelity Leads the Pack of Bitcoin ETFs
On Tuesday, March 26th, the nine-spot Bitcoin ETFs saw a combined net inflow of $417 million, as per data by Farside Investors.
On the other hand, Grayscale ETF GBTC experienced a notable net outflow of $212 million within the same timeframe. However, this was some improvement from the heavy $300+ million outflows daily throughout last week. GBTC’s historical net outflow now stands at $14.36 billion.
Among the Bitcoin spot ETFs, Fidelity’s ETF FBTC recorded the highest single-day net inflow, totaling approximately $279 million. This is the second time this week that Fidelity has managed to outpace BlackRock in daily inflows. Earlier on Monday, Fidelity’s inflows stood at $270 million while BlackRock’s inflows remained subdued at under $40 million.
Bitwise CIO Foresees Long-Term ETF Demand
After facing strong outflows last week, there’s been recent chatter about whether the spot Bitcoin ETF demand will persist going ahead. Bitwise Chief Investment Officer Matt Hougan expressed confidence in the long-term demand for these BTC ETFs.
He highlighted a significant variance in the pace of Bitcoin ETF adoption, noting that while some financial advisors have already allocated 3% to all their clients, others have yet to consider it. Additionally, he cited differing approval timelines among national account platforms, with some approving BTC ETFs imminently and others eyeing mid-2025 for potential approval.
Hougan emphasized that despite the current landscape, most professional investors still lack access to Bitcoin ETFs. However, he anticipated this dynamic to shift gradually over the next two years through a series of over 100 individual due diligence processes.
Furthermore, Hougan underscored the impact of ETF launches in mitigating downside risk associated with Bitcoin. He noted that previously, concerns over Bitcoin potentially plummeting to zero limited investment appetite. However, with such risks alleviated, larger allocations, such as 3% or 5%, become more feasible and logical for investors.
He also said that true institutions such as pension funds or endowments would still limit their Bitcoin exposure to 1%. However, he believes that for the wealth market, 3% is the new normal.
Day 19 of 20 on the road. It has been an amazing trip.
A few additional take-aways to share:
1) ETF Flows Will Continue for Years: A good question to ask about the new bitcoin ETFs is whether the incredible inflows we’ve seen in the first two months represent a one-time surge…
— Matt Hougan (@Matt_Hougan) March 26, 2024
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