The US-based Bitcoin ETFs exchange-traded funds have faced turbulence in the past few weeks, showcasing a concerning streak of capital outflows that reflects a declining appetite and sentiment among investors. However, recent daily performance metrics suggest a possible resurgence in demand for these crypto-based financial products.
Bitcoin ETFs Close Positive Week With $83 Million Net Inflow
Market data indicates that the Bitcoin ETFs in the United States displayed significant performance with a total net inflow of $83.09 million on Friday, March 21. This recent capital influx marks the sixth continuous day of daily net inflows for these cryptocurrency products.
Notably, on Friday, action was observed mainly in two of the Bitcoin ETFs. BlackRock recorded the highest value addition ($104.99 million) to its exchange-traded fund iShares Bitcoin Trust (ticker: IBIT), while the Grayscale Bitcoin Trust (GBTC) experienced a daily net outflow of $21.9 million by the week’s end.
Despite mixed individual performances, the collective $83.09 million inflow elevates the Bitcoin ETFs’ weekly total to an impressive $744.35 million, effectively reversing five weeks of ongoing net outflows from these exchange-traded funds.
According to data from SoSoValue, the US Bitcoin ETF market suffered a total withdrawal of $5.39 billion during the previous five weeks of negative outflows. Specifically, the market experienced a daily net outflow totaling over $1.14 billion on February 25.
The severe outflows have often been attributed to the uncertain conditions within the US financial markets, which have been affected by various factors including fears of a global trade conflict and ongoing interest rate discussions since President Donald Trump assumed office.
Bitcoin Price Unreactive To ETF Inflows
The impact of US Bitcoin ETFs on the value of the flagship cryptocurrency has been a topic of debate since their inception. Recent trends suggest the Bitcoin price often experiences stagnation during periods of investor withdrawal from ETF products.
Currently, despite fresh interest in the US Bitcoin ETFs, Bitcoin’s price remains entrenched in a consolidation phase, hovering around the $84,000 mark. This stability reflects minimal change over the past 24 hours. Nevertheless, a consistent demand for exchange-traded funds could potentially act as a catalyst for Bitcoin’s price to reclaim its upward trajectory.
As of now, data from CoinGecko indicates that Bitcoin has shown little in the way of notable movements throughout the past week.
