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Bitcoin (BTC) exchange-traded funds (ETFs) have recorded their first inflow in the month of March. A total of $458 million worth of Bitcoin ETFs were registered in inflows for the sector, according to Farside Investors data.
BlackRock dominates Bitcoin ETFs inflows
This is a significant development considering that the Bitcoin ETF market had closed February with $27.5 million worth of outflows on the last trading day. The bearish close had raised concerns among investors regarding the March outlook and whether the trend would continue.
However, March kicked off on a positive note as investors collectively put $458.2 million into the different Bitcoin ETF products. Notably, BlackRock’s IBIT had the largest inflows with over 50% of the total. IBIT recorded $263.2 million to lead daily inflows.
Other top performers include Fidelity’s FBTC with $94.8 million and Bitwise’s BITB with $36.4 million. VanEck’s HODL had $19.5 million, and Grayscale’s BTC recorded $18.4 million, while Franklin’s EZBC registered $14 million.
Despite the impressive inflows on the first trading day, investors are worried. In mid-February, reports indicated that Harvard trimmed its investment in Bitcoin ETF by a significant 21% and diverted it to Ethereum. The move sparked debate about declining interest from corporate entities investing in the sector.
Understandably, the concerns remain valid given the continued price volatility of the leading crypto asset on the market. Amid geopolitical tensions and dwindling risk appetite on the part of investors, Bitcoin’s fluctuation has continued unabated.
The coin has not been able to maintain stability above the $70,000 mark for some time now. Its latest attempt saw it decline from a daily peak of $70,044.00 to a low of $65,303.14 in the last 24 hours.
Can Bitcoin ETFs sustain their momentum?
As of this writing, Bitcoin exchanges hands at $67,103.03, which represents a 1.36% increase within the time frame.
The current rally is largely driven by regulatory optimism around U.S. crypto legislation and increased activity by institutional investors in the ETF market.
Bitcoin’s trading volume has also seen an uptick and soared by 40.14% to $55.25 billion as retail traders join in engaging the coin.
One fact with the ETF market is that recovery could occur at any moment once institutional interest picks up. For instance, $843 million in daily inflows in January pushed weekly inflows to $1.7 billion, stunning bears and stemming the outflows that had prevailed until then.
It remains to be seen if this bullish start to March might be the start of a week of positive inflows into the Bitcoin ETF space.
Dan Burgin
Vladislav Sopov
