Bitcoin ETF Inflows Rise, Fidelity Beats BlackRock

As investors pursue exposure via regulated instruments, the demand for spot Bitcoin ETFs on the wealth desks of major banks increases significantly.

As of Monday, March 25, the nine spot Bitcoin ETFs have recouped net positive inflows following a week of significant outflows.

Notably, the Fidelity FBTC Bitcoin ETF surpassed BlackRock’s IBIT in terms of overall inflows.

Bitcoin ETF Net Inflows Returns

Fidelity emerged victorious on Monday as its FBTC generated inflows totaling $261 million.

In contrast, BlackRock’s IBIT received a warm welcome with $35 million in inflows.

Meanwhile, Grayscale Bitcoin ETF GBTC outflows have remained robust as of Monday, totaling $350 million.

Nonetheless, certain market analysts had anticipated that these GBTC outflows would ultimately decelerate.

As per Bloomberg strategist James Seyffart, the recent outflows were presumably associated with bankruptcy, with Gemini and Genesis sales constituting the majority.

Seyffart expects this trend to diminish within the following week or so.

Notably, between Gemini and Genesis, they possessed an estimated 68 million shares of $GBTC.

Seyffart asserts that the liquidation of these positions at NAV was unquestionably for self-serving reasons.

Yea. Between Gemini and Genesis they had ~68 million shares of $GBTC. There was 100% a selfish interest in just being able to get out of those positions at NAV.

— James Seyffart (@JSeyff) March 25, 2024

US Banks SEE Strong BTC ETF Demand

According to QCP Capital, there has been a substantial increase in client demand for Bitcoin (BTC) spot exchange-traded funds (ETFs) at the wealth desks of prominent banks.

Furthermore, requests for structured products such as Accumulators and FCNs (Financial Contracts for Differences) have increased significantly.

The increasing demand for BTC spot ETFs signifies a burgeoning investor inclination toward acquiring Bitcoin exposure via conventional financial instruments.

Asset managers are reportedly incorporating Bitcoin investments into their portfolios to enhance diversification.

This underscores the potential of cryptocurrencies to function as a distinct asset class.

Moreover, institutional investment managers are obligated to commence the submission of their 13F forms to the Securities and Exchange Commission (SEC) starting from the following week.

This analysis will unveil the entities that have acquired Bitcoin exchange-traded funds (ETFs).

The Bitcoin price surpassed $70,000 on Monday due to net inflows into ETFs.

BTC is trading 5.5% higher at $70,533 with a market cap of $1.387 trillion as of press time.