After a strong start, inflows into spot Bitcoin exchange-traded funds (ETFs) in the USA have turned positive again. The spot ETF offered by Fidelity, FBTC, led the inflows. Accordingly, on March 25th, FBTC reached a net inflow of 261 million dollars, surpassing BlackRock‘s IBIT, which saw a net inflow of 35 million dollars.
Outflows Continue from GBTC
The increase in net inflows came after a week of significant outflows from Grayscale’s spot ETF, GBTC, which ended the day on March 25th with a net outflow of 350 million dollars. Analysts suggest that the outflows from GBTC could be related to sales by bankrupt companies and predict that this trend may slow down in the coming week.
According to Bloomberg strategist James Seyffart, the recent outflows from GBTC are likely due to sales from Gemini and Genesis, which collectively hold about 68 million GBTC shares. Seyffart suggested that the liquidation of these positions at a discount to the net asset value (NAV) could have a self-serving reason behind it.
Appetite for Bitcoin Rekindles
On the other hand, analysts from the leading crypto firm QCP Capital indicate that there is a significant increase in demand from major banks’ asset desks for spot Bitcoin ETFs and structured products such as Financial Contracts for Differences and Accumulators (FCNs). This increase in demand points to a growing appetite among investors to invest in Bitcoin through traditional financial instruments.
The rising demand for spot Bitcoin ETFs is part of a broader trend of asset management firms adding BTC allocations to portfolios for diversification purposes. Additionally, institutional investment managers will submit their 13F forms to the US Securities and Exchange Commission (SEC) next week, revealing which institutions have invested in Bitcoin through spot ETFs.
With the resumption of inflows into spot Bitcoin ETFs, the largest cryptocurrency once again surged, exceeding the 70,000 dollar level on March 25th. At the time of writing, BTC is trading at 70,343 dollars, up 5.5% in the last 24 hours, with a market value of 1.38 trillion dollars.
