Spot Bitcoin ETF Flows Return to Positive as BTC Powers to $71K

For the first time since March 15, the net aggregate flow of funds to the newly launched batch of spot BTC ETFs is positive.

March 25 saw a net inflow of $15.4 million, reversing a trend that has resulted in net outflows of $887 million over the past week.

While yesterday’s inflow figure is the lowest since January 26, it marks a trend reversal as Bitcoin prices recover following their pre-halving retrace.

Bitcoin ETFs Back in Black

Preliminary data from Farside Investors reports that Grayscale’s GBTC saw a $350 million outflow on March 25. Contrary to analyst predictions, GBTC outflows have not slowed down and continue to impact overall aggregate ETF flow figures.

Bitcoin ETF Flow (US$ million) – 2024-03-25

TOTAL NET FLOW: 15.4
(Provisional data)

IBIT: 35.5
FBTC: 261.8
BITB: 14
ARKB: 0
BTCO: 18.5
EZBC: 20.5
BRRR: 11.2
HODL: 4
BTCW: 0
GBTC: -350.1

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) March 26, 2024

Grayscale has hemorrhaged 273,335 BTC since its GBTC fund was converted to a spot ETF in mid-January. Assets under management for the remaining 347,552 BTC in the fund are currently $24.7 billion.

Today’s flow figures have been boosted by Fidelity, which has had a $262 million inflow for its FBTC fund, which has an AUM total of $7.2 billion.

BlackRock, which has been leading the pack so far, only managed an inflow of $35.5 million – way below its average. Its IBIT fund has an AUM figure of $13.4 billion, so the two together still don’t match what Grayscale holds.

Bloomberg ETF analyst Eric Balchunas reported that BlackRock and Fidelity have had 50 straight days of inflows, which is “unheard of for a new ETF.”

Happy 50 Straight Days of Inflows to all who celebrate.. Here’s look at top ETFs by ‘active’ inflow streaks, $IBIT and $FBTC on top, shows how weird 50 days is (and unheard of for new etf, altho long ways to beat all time record of 160 days set by $JEPI) via @thetrinianalyst pic.twitter.com/Ty7u5Z4xjx

— Eric Balchunas (@EricBalchunas) March 25, 2024

The ETF flow trend change comes as Bitcoin prices surged to $71,000 in late trading on March 25. The asset had held gains and was trading at $70,641 at the time of writing during the Tuesday morning Asian trading session.

Ethereum ETF Odds Adjusted

Approval odds for spot Ethereum ETFs have been tweaked again by those in the know. “We are holding the line at 25% odds, although it is a very pessimistic 25%,” said Balchunas on March 26.

“The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain’t looking good.”

Meanwhile, Grayscale chief legal officer Craig Salm said he was not deterred “and believe the ETFs should be approved” before explaining:

“I don’t think perceived lack of engagement from regulators should be indicative of one outcome or another. All of these issues were figured out and are identical when comparing spot BTC to ETH ETFs.”

Interesting comments from Grayscale Chief Legal Officer on spot ether ETFs…

“I don’t think perceived lack of engagement from regulators should be indicative of one outcome or another.”

“All of these issues were figured out & are identical when comparing spot btc to eth ETFs.” https://t.co/SsgBFhynZ2

— Nate Geraci (@NateGeraci) March 25, 2024