Bitcoin ETFs Experience Rebound with Over $500 Million in Inflows
Spot Bitcoin ETFs have accrued over $500 million in net inflows recently, led by ARKB with $180 million. This shift follows prior outflows due to market uncertainties. Rising confidence among investors, in part due to Bitcoin’s stability, suggests a positive trend in ETF investments as institutional investors adjust portfolios ahead of quarter-end.
Spot Bitcoin exchange-traded funds (ETFs) have seen over $500 million in net inflows within the last three days, recovering from previous losses amid a modest rally in Bitcoin prices and broader gains in risk-oriented assets. Key contributors to this rebound include the ARK21Shares Bitcoin ETF (ARKB), the Fidelity Wise Origin Bitcoin Fund (FBTC), and BlackRock’s iShares Bitcoin Trust (IBIT), with ARKB attracting $180 million in inflows, as reported by Farside Investors, a U.K. asset management firm.
IBIT and FBTC also experienced significant inflows of $169.6 million and $136.5 million, respectively, during this period. According to Alan Orwick, co-founder of Quai Network, the recent transition from outflows to inflows reflects an increasing confidence among investors, attributed to Bitcoin’s price stability and renewed institutional interest.
This influx follows five weeks of net outflows, during which Bitcoin and other markets faced declines due to investor concerns surrounding a potential trade war, geopolitical tensions, and other macroeconomic uncertainties. Currently, Bitcoin trades at approximately $84,500, showing an increase of over 3% in the last 24 hours, despite a month-over-month decline exceeding 11% as reported by CoinGecko.
Furthermore, over 68% of prediction market traders on MYRIAD anticipate that Bitcoin’s price will maintain above $83,000 by March 23. As stock markets rallied on Tuesday, investors were also looking forward to upcoming interest rate decisions and indications regarding the U.S. central bank’s continued quantitative easing policies, which typically support risk-on assets.
Alan Orwick highlighted that as the quarter concludes, institutional investors are likely adjusting their portfolios to better align with strategic asset allocations, thereby encouraging increased investments in Bitcoin ETFs, particularly in response to Bitcoin’s performance relative to other assets. Notably, the 11 Bitcoin ETFs launched last year have proven highly successful, collectively managing around $100 billion in assets, with IBIT alone accounting for nearly $40 billion in net inflows even amid a downturn in Bitcoin’s price. Economic concerns, including recession prospects, have overshadowed the crypto-friendly policies of former U.S. President Donald Trump.
In conclusion, Bitcoin ETFs have experienced a significant resurgence with over $500 million in inflows as investor confidence grows amid Bitcoin’s price stabilization. This reversal follows a period marked by substantial outflows, influenced by macroeconomic uncertainties. The performance of leading ETFs such as ARKB and IBIT indicates a shift in investor sentiment towards Bitcoin as a promising asset. Furthermore, as institutional investors recalibrate their portfolios, the potential for continued growth in Bitcoin ETFs remains strong amidst broader market gains.
Original Source: decrypt.co
Post Comment