U.S. spot bitcoin exchange-traded funds (ETFs) experienced a surge in daily net inflows on Monday, amounting to a substantial $274.6 million. This marks the most significant inflow since February 4th.
Bitcoin ETFs have faced considerable selling pressure in recent weeks. The funds witnessed five successive weeks of net outflows, during which a hefty sum of approximately $5.4 billion moved out, as per data from SoSoValue.
“The current shift implies an increasing confidence, spurred on by the stabilization of bitcoin’s price and the resurgence of institutional interest,” remarked Rachael Lucas, a crypto analyst at BTC Markets.
Lucas highlighted factors such as institutional portfolio rebalancing at the end of the quarter and a growing demand for lower-fee ETFs as contributors to the positive inflows seen on Monday.
Five bitcoin ETFs reported net inflows on Monday, with none registering outflows. Fidelity’s FBTC led the inflows with $127.3 million. Additionally, Ark and 21Shares’ ARKB experienced an inflow of $88.5 million.
BlackRock’s IBIT, recognized as the most substantial spot bitcoin ETF by net assets, reported inflows of $42.3 million on Monday. Grayscale’s Mini Bitcoin Trust and Bitwise’s BITB also recorded net inflows.
Overall, Monday witnessed approximately $1.87 billion in total daily volume. The cumulative total net inflow since their listing reached $35.58 billion.
Bitcoin appears to have found stability at about $83,000 after significant volatility earlier in the month, with prices varying between $78,500 and $94,000.
“Investors should anticipate continued volatility,” Lucas cautioned. “With the end of the quarter nearing, investors are scrutinizing positioning shifts. Institutional rebalancing may stimulate additional inflows, but any price weakness might provoke another round of outflows.”
Disclaimer: The Block is an independent news outlet offering news, research, and data. Foresight Ventures, a majority investor in The Block as of November 2023, also invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently, providing objective and timely crypto industry information. This article is for informational purposes only and is not intended as legal, tax, investment, financial, or other advice.
