Resurgence of Fresh Capital in US Spot ETFs: BlackRock and Fidelity Lead the Way
US spot exchange-traded funds (ETFs) have seen a revival in fresh capital, reversing a trend of consecutive net outflows. Data from Farside Investors shows that the ten approved spot Bitcoin ETFs collectively experienced a net inflow of $418 million on March 26, with BlackRock’s and Fidelity’s funds taking the lead.
- Fidelity’s fund recorded its largest daily inflow since March 13, attracting $279.1 million on March 26. The investment giant added an additional 4,000 BTC to its holdings, marking the second consecutive day of inflows exceeding $260 million.
- BlackRock’s fund saw inflows of $162.2 million, although its daily inflows were lower compared to earlier in the month when they averaged over $300 million per day.
Grayscale Sees Outflows as Other Funds Register Inflows
The Ark 21Shares Bitcoin ETF fund had its best day since March 12, with $73.6 million in inflows. Invesco Galaxy, Franklin Templeton, and Valkyrie also observed more than $26 million worth of inflows across their respective funds. On the contrary, Grayscale’s Bitcoin Trust (GBTC) continued to experience outflows, recording a daily outflow of $212 million. However, the net inflows from its competitors outweighed GBTC’s outflows.
- Since transitioning into an ETF on January 11, Grayscale has witnessed a significant outflow of 277,393 BTC, valued at approximately $19.5 billion at current prices.
Hashdex Joins as Eleventh Spot Bitcoin ETF Issuer in the US
On March 26, Hashdex, a crypto asset management firm, announced its entry as the eleventh spot Bitcoin ETF issuer in the United States. They transformed their futures fund into a spot product, now trading under the ticker DEFI.
Bitcoin Price Holds Steady at $70,000 Level
The price of Bitcoin has maintained the $70,000 mark amid news that the London Stock Exchange plans to introduce Exchange-Traded Notes (ETNs) for BTC and ETH in May. The decision follows the exchange’s previous announcement that it would accept applications for crypto ETNs.
- Crypto asset trading firm QCP Capital revealed that asset managers continue to add Bitcoin allocations as a “portfolio diversifier.” Requests for structured products such as Accumulators and FCNs have surged, indicating a strong appetite for diversifying investment portfolios with BTC.
- QCP expects Bitcoin to sustain momentum, break all-time highs, and potentially reach the coveted $100,000 mark.
Hot Take: Embracing the Rise of ETFs and Bitcoin’s Price Surge
In a dynamic market environment, the resurgence of fresh capital in US spot ETFs signifies growing investor confidence and interest in digital assets. BlackRock and Fidelity leading the way in attracting significant inflows highlight the evolving landscape of financial markets.
On the other hand, the stability of Bitcoin’s price at $70,000 amidst upcoming developments like ETNs on the London Stock Exchange indicates a maturing market with increasing institutional adoption. As asset managers embrace Bitcoin for diversification, the cryptocurrency’s potential to reach new highs, including $100,000, showcases its growing significance in investment portfolios.
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