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Spot Bitcoin ETFs Witness Sharp Decline in Inflows, Falling 80% Amidst Crypto Market Downturn

Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced a significant decrease in net inflows, with only $132 million recorded on March 14.

This represented the lowest level of net inflows in the last eight trading sessions and a drastic 80% reduction from the $684 million recorded on March 13.

The decline on March 14 followed another decrease from the previous day, contrasting sharply with the record single-day inflows of $1.05 billion seen on March 12.

Despite the notable drop, the total inflow into Bitcoin ETFs was $390 million on March 14, factoring in a substantial $257 million in outflows from the Grayscale Bitcoin Trust ETF (GBTC), leading to the net inflow figure of $132 million.

The VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund also saw inflows, albeit modest, at $13.8 million and $13.7 million, respectively.

Despite GBTC’s significant outflows, the overall ETF market managed to maintain positive net flows on that day.

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Leading the inflows, BlackRock’s iShares Bitcoin Trust ETF attracted $345 million. Cumulatively, the U.S. spot Bitcoin ETF market has seen impressive inflows, nearing the $12 billion mark after just 44 days of trading activity.

This trend of declining ETF inflows is occurring alongside a downturn in the broader crypto market, highlighted by a drop in BTC prices below $69,000.

The falling ETF inflows were mirrored by BTC price movements, which saw a new all-time high of over $73,000 on March 13 before falling to around $66,000 on March 15.

This price dip resulted in significant liquidations, with CoinGlass reporting that 193,431 traders were liquidated, totaling $682.14 million in the previous 24 hours.

Market analysts suggest that the current volatility, regulatory uncertainty, and macroeconomic considerations are prompting investor caution.

The ongoing decline in ETF inflows and BTC prices is also being watched closely in relation to the upcoming Federal Open Market Committee meeting, which is expected to provide insights into the Federal Reserve’s future interest rate decisions.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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