tl;dr
Last week, the broader market rout led to a significant sell-off in spot Bitcoin ETFs, with a 73.6% outflow totaling $196.48 million, setting a new record low for the year. The Bitcoin ETF market saw positive inflows for the first four days of the week but experienced a $93.16 million outflow on the...
Last week, the broader market rout led to a significant sell-off in spot Bitcoin ETFs, with a 73.6% outflow totaling $196.48 million, setting a new record low for the year. The Bitcoin ETF market saw positive inflows for the first four days of the week but experienced a $93.16 million outflow on the following Friday, ending a 10-day inflow streak. While some ETFs saw massive inflows, others contributed little or nothing to the trend. The performance of Bitcoin, currently at $82,047, has impacted sentiment in the digital currency ecosystem, leading to firms rolling out new debt offerings to acquire the coin at a discount. Institutional adoption of Bitcoin has remained positive, with the potential to influence the ETF inflow trajectory.
Last week, the rout on the broader market fueled a corresponding sell-off in spot Bitcoin ETF outflows. According to data from SoSoValue, the funds suffered a 73.6% outflow from the previous week, setting a new record low for this year. An outflow of exactly $196.48 million was recorded against $744.35 million in the previous week. The Bitcoin ETF market responds to uncertainties on the broader crypto market. The Bitcoin ETF market saw positive inflows for the first four days of the week that ended March 28. However, the products saw a general shift, with a $93.16 million outflow on Friday, March 28.
While BlackRock’s IBIT and Fidelity’s FBTC saw massive inflows during the period, ETF issuers like Franklin Templeton, Valkyrie, VanEck, and WisdomTree, among others, contributed little or nothing to the inflow trend. The $93.16 million outflow recorded by spot Bitcoin ETFs on Friday ended the industry's 10-day inflow streak. While the flow has remained consistent, data shows that the figures for the past week are milder than the previous week. The biggest daily inflow thus far this month was on March 17, with a record $274.6 million. Fidelity Investments led the flow at the time with $127.3 million.
The performance of Bitcoin has largely dampened sentiment in the broader digital currency ecosystem. As of press time, the coin was changing hands for $82,047, down by 1.27% in 24 hours. While the ETF market has continued to hemorrhage funds, firms like Metaplanet are rolling out new debt offerings to buy the coin. The goal is to scoop the coin up at a good discount. The institutional adoption of Bitcoin, in general, has remained positive, with Strategy announcing massive acquisitions earlier this month. Whether these trends will shift the ETF inflow trajectory remains to be seen.