Bitcoin ETF Inflows Surge Past $400 Million
Spot Bitcoin ETFs witnessed a significant rebound in inflows, surpassing $400 million on the second day of the week. This positive trend follows a period of heavy GBTC liquidations in the previous week.
Fidelity Emerges as Top Bitcoin ETF
According to data from Farside Investors, on March 26th, spot Bitcoin ETFs received a collective net inflow of $417 million. In contrast, Grayscale ETF GBTC saw a net outflow of $212 million during the same period, showing improvement from the substantial outflows experienced in the previous week.
- Fidelity’s ETF FBTC led the way with a single-day net inflow of $279 million.
- This is the second time in the week that Fidelity has outpaced BlackRock in daily inflows.
- Earlier in the week, Fidelity recorded inflows of $270 million, while BlackRock remained below $40 million.
Bitwise CIO Optimistic About ETF Demand
Bitwise’s Chief Investment Officer, Matt Hougan, expressed confidence in the sustained demand for spot Bitcoin ETFs despite recent outflows. Hougan highlighted the following points regarding the future of BTC ETFs:
- Significant variation in the pace of adoption across financial advisors.
- Anticipation of over 100 due diligence processes for professional investors in the next two years.
- Shift towards higher allocations like 3% to 5% due to reduced downside risk.
Moreover, Hougan emphasized that while true institutions may limit Bitcoin exposure to 1%, the wealth market could see 3% becoming the new normal.
Day 19 of 20 on the road. It has been an amazing trip.
A few additional take-aways to share:
1) ETF Flows Will Continue for Years: A good question to ask about the new bitcoin ETFs is whether the incredible inflows we’ve seen in the first two months represent a one-time surge…
— Matt Hougan (@Matt_Hougan) March 26, 2024
Hot Take: Advancing Bitcoin ETF Landscape
The renewed inflows into spot Bitcoin ETFs demonstrate a positive trend in investor sentiment towards cryptocurrency investments. With industry leaders like Fidelity taking the lead in attracting significant investments, the future of Bitcoin ETFs looks promising. As more investors and financial advisors recognize the potential of digital assets, the demand for ETFs is expected to grow steadily over the coming years. The evolving landscape of Bitcoin ETFs indicates a broader acceptance of cryptocurrencies in traditional financial markets.
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