Bitcoin ETF Inflows Turn Positive Once Again, Fidelity Outpaces BlackRock

Major banks report a surge in client demand for spot Bitcoin ETFs as investors seek regulated exposure to the cryptocurrency.
By Bhushan Akolkar
Bitcoin ETF To Grab $5B AUM From Over 700 Institutional Investors: Bitwise CIO

Highlights

  • Fidelity leads with $261 million in inflows on Monday.
  • GBTC outflows continue to remain high at $350 million a day amid strong selling by Genesis.
  • US banks see strong demand from clients for spot Bitcoin ETFs.

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.

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.

Advertisement
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.