Bitcoin ETF Inflows Plummet 80% Amidst Price Dip
On March 14, Bitcoin exchange-traded funds (ETFs) experienced their lowest net inflows in eight trading days, with only $132 million added. This marked an 80% decline from the previous day and the second consecutive day of decline. The previous day, there was a 38.3% drop with an inflow of $684 million, while Tuesday saw a record-breaking single-day inflow of $1.05 billion. In total, the flow of funds into ETFs on March 14 was $390 million, but Grayscale’s GBTC saw outflows of $257 million, resulting in a net inflow of $132 million. On the same day, VanEck Bitcoin Trust ETF (HODL) and Fidelity’s FBTC recorded inflows of $13.8 million and $13.7 million, respectively. Despite the significant outflow from GBTC, the net flow remained positive.
Among the various ETFs, BlackRock’s IBIT ETF had the largest inflow share at $345 million, while the other ETFs had minor inflows. The cumulative net inflow into the U.S. spot Bitcoin ETF has reached nearly $12 billion in just 44 days of trading. This positive trend in investor sentiment is now changing due to a broader downturn in the crypto market. The BTC price dropped below $69,000, and this decline has affected ETF inflows. Interestingly, after a bullish price action on Wednesday, BTC reached a new all-time high above $73,000 but then reversed course on Thursday, reaching $69,000 and falling further on Friday to trade in the $66,000 range. This decline in price led to the liquidation of millions of leveraged positions, with 193,431 traders liquidated in the past 24 hours and a total liquidation value of $682.14 million, as per CoinGlass data.
Many market experts speculate that the current market volatility, regulatory uncertainties, and macroeconomic factors have made investors more cautious. The upcoming Federal Open Market Committee (FOMC) meeting scheduled for next week is adding to the decline. Investors are eager to hear about the Federal Reserve’s plans for interest rates in the future, which could have an impact on the market.
4 thoughts on “Bitcoin ETF Inflows Plummet 80% Amidst Price Dip”
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Interest rates have a huge impact on the market. Investors are right to be concerned.
It’s no surprise that leveraged positions are being liquidated with such a market decline. These losses are huge.
The decline in BTC price is really affecting ETF inflows. Investors are losing confidence.
It’s unfortunate to see the decline in investor sentiment due to the broader downturn in the crypto market. Hopefully, the market will stabilize soon.