Bitcoin ETF Inflows Reach Above $400 Million, Fidelity Leads
Inflows into spot Bitcoin ETFs rebounded strongly on the second day of the week, once again rising above $400 million. This comes as a healthy development as strong outflows from Bitcoin ETFs were seen following heavy GBTC liquidations throughout last week.
Fidelity Leads the Bitcoin ETF Pack
Nine-point Bitcoin ETFs saw net inflows totaling $417 million on Tuesday, March 26, according to data from Farside Investors.
Grayscale ETF GBTC, on the other hand, experienced a significant net outflow of $212 million in the same time period. But this was a slight improvement from the heavy $300+ million daily outflow over the past week. GBTC’s historical net outflow currently stands at $14.36 billion.
Among Bitcoin spot ETFs, Fidelity’s ETF FBTC recorded the highest single-day net inflow, totaling approximately $279 million. This is the second time this week that Fidelity has managed to surpass BlackRock in daily inflows. As of early Monday, Fidelity’s entry was at $270 million, while BlackRock’s entry was below $40 million.
Bitwise CIO Predicts Long-Term ETF Demand
After facing strong outflows last week, there has been debate lately about whether spot Bitcoin ETF demand will continue. Bitwise Chief Investment Officer Matt Hougan expressed confidence in the long-term demand for these BTC ETFs.
He noted a significant difference in the pace of Bitcoin ETF adoption, noting that some financial advisors are already allocating 3 percent to all their clients, while others have yet to take that into account. Additionally, he cited different approval timelines between national account platforms; some have approved BTC ETFs recently, while others are waiting until mid-2025 for potential approval.
Hougan emphasizes that despite the current situation, most professional investors still do not have access to Bitcoin ETFs. However, he predicted that this dynamic would gradually change over the next two years through more than 100 individual due diligence processes.
Additionally, Hougan highlighted the impact of ETF launches in reducing downside risks associated with Bitcoin. He previously noted that concerns about Bitcoin boil down to potentially zero-limited investment appetite. However, as such risks decrease, larger allocations such as 3% or 5% become more appropriate and logical for investors.
He also said that real institutions such as pension funds or endowments will still limit Bitcoin exposure to 1%. But he believes 3% is the new normal for the asset market.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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