The cryptocurrency market has experienced significant fluctuations in recent months, with over $1.67 billion exiting US spot Bitcoin and Ether exchange-traded funds (ETFs) in March alone. However, a recent development has indicated a potential shift in this trend. On March 12, investors added $13.3 million to Bitcoin ETFs, coinciding with the BTC market price approaching the $85,000 mark.
As of March 12, spot Bitcoin ETFs witnessed inflows amounting to $35.4 million over a span of two days, according to data from Farside Investors. In contrast, spot Ether ETFs recorded inflows on just one occasion, bringing in $14.6 million on March 4. This rise in interest could signal a turning point for investor sentiment towards Bitcoin, particularly in the context of ongoing market volatility.
Bitcoin ETFs Break Outflow Streak with $13.3 Million Inflow
According to Sosovalue, the cumulative net inflows of Bitcoin ETFs confirm the recent $13.3 million inflow, marking a pause in the prolonged outflows that had dominated the market. On that day alone, the total trading volume for Bitcoin ETFs reached $2.01 billion, the lowest daily figure since February 20. The inflows were primarily driven by three key Bitcoin funds: BlackRock’s iShares Bitcoin Trust (IBIT), the ARK 21Shares Bitcoin ETF (ARKB), and the Grayscale Bitcoin Mini Trust ETF (BTC).
The Performance of Ethereum ETFs
Turning to Ethereum, the singular day of inflows noted earlier came from the Fidelity Ethereum Fund (FETH), Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini Trust (ETH). This activity highlights a degree of investor confidence in Ether as well, albeit less consistent compared to Bitcoin.
Market Dynamics Influencing ETF Flows
The broader market downturn, fueled by macroeconomic uncertainties—including geopolitical tensions and trade conflicts—has contributed significantly to ETF outflows. Analysts suggest that the lack of tangible progress regarding plans such as President Donald Trump’s Strategic Bitcoin Reserve has compounded selling pressure. Despite Bitcoin managing to maintain levels above $80,000, experts warn of potential volatility due to upcoming EU retaliatory tariffs, which may significantly impact Bitcoin’s price trajectory in the coming days.
For investors and market watchers alike, these recent inflows present a cautious optimism for Bitcoin ETFs, and potentially a broader recovery in the cryptocurrency market as geopolitical concerns are navigated.
