U.S. spot Bitcoin exchange-traded funds (ETFs) have rebounded with positive net flows after a recent period of negative flows, indicating a notable market shift.
According to a report by BitMEX Research, ETFs recorded a total net flow of $15.7 million on March 25, 2024.
Fidelity Investments’s $FBTC and BlackRock’s $IBIT led the pack in net inflows, with $261.8 million and $35.5 million, respectively. Meanwhile, Grayscale’s $GBTC continued its downsizing trend, experiencing outflows of $350.1 million. Notably, Grayscale Bitcoin Trust Share has yet to see a positive flow of assets since the launch of the ten ETFs.
Over the past seven days, these ETFs witnessed negative net flows for three consecutive days, resulting in a collective loss exceeding $742 million from their asset portfolios. These losses coincided with Bitcoin’s price plummeting below $66,500.
However, Bitcoin’s price has since staged a significant rebound, currently trading above the $70,000 mark, according to data from CoinMarketCap.
Analysts have suggested that there is a close correlation between Bitcoin’s price and the net flows of assets into the Bitcoin Spot ETF market. Notable outflows have typically accompanied significant price declines, while substantial inflows have corresponded with price increases. For instance, on March 11, 12, and 13, when the spot Bitcoin ETF market witnessed inflows of $118.8 million, $82.9 million, and $16.5 million, respectively, Bitcoin reached new all-time highs of $72,825, $73,637, and $73,750.
BitMEX Research also provided insights into the Bitcoin equivalent of net asset flows through the ETFs. Their report revealed a total of 221.1 BTC coins flowing through the U.S. Spot Bitcoin ETF market, with Fidelity Investments’ $FBTC portfolio adding 3,689.3 BTC.
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