Bitcoin ETFs Experience Negative Net Flows Despite Inflows from Major Players
Despite significant inflows from BlackRock, Fidelity, Bitwise, and Ark 21Shares Bitcoin exchange-traded funds (ETFs), spot Bitcoin ETFs experienced negative net flows on Friday. The Genesis and Gemini situation had a negative impact on the Bitcoin ETF net flows, particularly with the growing outflow rate of GBTC in recent days. However, overall, the week was positive for Bitcoin ETFs, with a net inflow of $1.7 billion.
$140 Million Outflow Recorded by Bitcoin ETFs
On March 1, spot Bitcoin exchange-traded funds (ETF) saw a net outflow of $140 million, according to data from Bloomberg and BitMEX Research. This outflow was accompanied by a substantial $492.2 million outflow from GBTC, resulting in a decrease in Bitcoin ETF inflows.
Bloomberg ETF analyst James Seyffart attributed the large outflows from GBTC to the Genesis and Gemini situation. Genesis, a crypto lender, recently received court approval to sell 35 million GBTC shares worth $1.3 billion.
March 1 saw massive trading volumes for spot Bitcoin ETFs. Eric Balchunas, senior ETF analyst at Bloomberg, noted that it was the third-largest trading day ever and that $22 billion was traded throughout the week, equivalent to about a month’s worth of volume in just five days. Balchunas also speculated that inflows may decrease in the coming days.
Inflows and Outflows for Major Bitcoin ETFs
BlackRock’s iShares Bitcoin ETF (IBIT) experienced an inflow of $202.5 million, significantly lower than its recent largest inflows. With this latest inflow, BlackRock’s net inflow surpassed $7.95 billion, and its asset holdings reached over $10.5 billion.
Fidelity Bitcoin ETF (FBTC) and Ark 21Shares (ARKB) Bitcoin ETF received inflows of $49.3 million and $55 million, respectively. Bitwise (BITB) and other spot Bitcoin ETFs saw slightly lower inflows. VanEck Bitcoin ETF (HODL) recorded another outflow of $1.8 million.
GBTC experienced another major outflow of $492.4 million following a $598.9 million outflow on Thursday. To date, GBTC has seen net outflows totaling over $8.89 billion.
Predicting the Future of BTC Price
After experiencing a 45% gain last month, BTC price has been trading sideways in the past 24 hours. It is currently priced at $62,046, with a 24-hour low of $57,093 and a high of $63,913. The trading volume has also decreased by 30% within the same period, indicating a decline in trader interest.
Recent reports have suggested a potential correction in BTC price to $42K after the bitcoin halving event, which could present another opportunity for investors to buy the dip before it reaches $100K.
The open interests (OI) for Bitcoin futures and options remain at record levels, with total futures OI increasing by over 1% to reach $27.26 billion according to Coinglass data. Despite Bitcoin options puts exceeding calls due to high funding rates, predictions of Bitcoin reaching $100K remain unchanged.
Hot Take: Bitcoin ETFs Experience Mixed Flows Amidst Market Volatility
Bitcoin ETFs have seen a combination of positive and negative net flows recently. While major players like BlackRock, Fidelity, Bitwise, and Ark 21Shares have recorded significant inflows, the overall net flows for spot Bitcoin ETFs were negative on Friday.
The Genesis and Gemini situation has played a role in the net outflows, with GBTC experiencing substantial outflows in recent days. However, the week as a whole has been positive for Bitcoin ETFs, with a total net inflow of $1.7 billion.
As BTC price continues to trade sideways and undergoes market volatility, it remains to be seen how the net flows for Bitcoin ETFs will be affected in the coming days. Traders and investors should closely monitor the market conditions and developments to make informed decisions regarding Bitcoin ETFs.
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