Bitcoin ETF Inflows Turn Positive Once Again, Fidelity Outpaces BlackRock

Following a week marked by significant outflows, the nine spot Bitcoin ETFs have once more registered net positive inflows as of Monday, March 25th. Notably, Fidelity’s FBTC Bitcoin ETF has surpassed BlackRock’s IBIT in total inflows during this period.

Bitcoin ETF Net Inflows Are Back

On Monday, Fidelity emerged as the clear winner with its FBTC recording $261 million worth of inflows. On the other hand, BlackRock’s IBIT received a smiled response with $35 million in inflows.

On the other hand, outflows from the Grayscale Bitcoin ETF GBTC have remained strong standing at $350 million on Monday. However, some market analysts have been expecting that these GBTC outflows would slow down eventually.

According to Bloomberg strategist James Seyffart, the recent outflows were likely linked to bankruptcy, predominantly stemming from sales by Gemini and Genesis. Seyffart anticipates this trend to decelerate over the next approximately week. Notably, between Gemini and Genesis, they held approximately 68 million shares of $GBTC. Seyffart asserts that there was undoubtedly a self-serving motive behind liquidating these positions at NAV.

Yea. Between Gemini and Genesis they had ~68 million shares of $GBTC. There was 100% a selfish interest in just being able to get out of those positions at NAV.

— James Seyffart (@JSeyff) March 25, 2024

US Banks See Strong Demand for BTC ETFs

According to QCP Capital, wealth desks at major banks are experiencing a significant surge in demand from clients for Bitcoin (BTC) spot exchange-traded funds (ETFs). Additionally, there has been a notable increase in requests for structured products such as Accumulators and FCNs (Financial Contracts for Differences).

The rise in demand for BTC spot ETFs indicates growing interest among investors in gaining exposure to Bitcoin through traditional financial instruments. Furthermore, asset managers are reportedly adding BTC allocations to portfolios as a means of diversification. This highlights the potential of cryptocurrencies as an alternative asset class.

Moreover, beginning next week, institutional investment managers are scheduled to submit their 13F forms to the Securities and Exchange Commission (SEC). This will provide insight into which entities have been purchasing Bitcoin exchange-traded funds (ETFs).

On Monday, the Bitcoin price bounced back past $70,000 amid the net inflows into ETFs. At press time, BTC is trading 5.5% up at $70,533 with a market cap of $1.387 trillion.