News on price trends: outflows in Bitcoin ETFs and historic lows for BlackRock and Fidelity

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News on price trends: Bitcoin spot ETFs have seen a constant outflow of capital during each day of the previous week, with record low inflows for BlackRock’s IBIT and Fidelity’s FBTC.

Furthermore, Grayscale’s GBTC marked a new record outflow in a single day, on Monday, March 18, which could indicate the sale of shares by Genesis.

Let’s see below all the details. 

Analysis of prices for Bitcoin ETFs: news on weekly variations in financial flows

As anticipated, this week, the Wall Street Bitcoin ETFs have set a new record.

However, unlike the recent past, they may not generate the same enthusiasm among cryptocurrency traders, given the series of five consecutive days of net outflows.

In the last seven days, the top ten ETFs have recorded total outflows amounting to $888 million. This was mainly driven by a record outflow day from Grayscale’s GBTC on Monday, March 18, according to BitMEX Research data. 

This sequence of five consecutive days of net outflows is the longest so far, surpassing the four-day series recorded in January of this year.

After significant outflows, there have been modest inflows. The Blackrock IBIT, which represents almost half of the market, recorded a record inflow of $49.3 million on Wednesday, March 20.

However, it was surpassed on Friday when it received only 18.9 million dollars of new capital. Even Fidelity’s FBTC, the third ETF on Bitcoin, saw record inflows this week, with only 2.9 million dollars on Thursday, March 21.

Although outflows have been influenced by the pullback of the Bitcoin price, other variables could explain such significant outflows.

The Bloomberg ETF analyst, Eric Balchunas, suggested that the significant outflows from Grayscale could be the result of trading by the digital financial company Genesis.

Despite the negative net inflows, trading volumes have remained significant, although slightly lower than in previous weeks. 

According to data from The Block, aggregated volumes of Bitcoin ETFs have increased by about 22 billion dollars in the last week, reaching a total of 164 billion dollars.

Optimism and challenges in the world of Bitcoin ETFs

Nate Geraci, an authoritative figure in the ETF industry, recently used X (formerly Twitter) to push back against some premature claims regarding the decline of Bitcoin Exchange Traded Funds (ETFs).

Despite the recent outflow mentioned above, Geraci believes that the game is still open. The analyst emphasized the surprising success of the launch of these ETFs, which have attracted approximately 50 billion dollars in assets under management.

Furthermore, Geraci highlighted that Registered Investment Advisors (RIA) and brokerage platforms still need to approve the use of Bitcoin ETFs, indicating significant untapped potential. 

In a subsequent post, Geraci recalled how many opponents initially predicted a lack of demand for Bitcoin ETFs.

Geraci was upset by a recent report from the Financial Times, which raised concerns about the alleged decrease in demand for the advertised product. 

Ilan Solot from Marex told the Financial Times that Bitcoin ETFs are now in a phase of “fatigue” after a brief period of excitement. 

Even James Butterfill from CoinShares has observed that some investors are staying on the sidelines due to the rapid drop in the price of Bitcoin.

Despite short-term turbulence, industry operators remain optimistic about the long-term prospects of Bitcoin and its ETFs.

Analysts highlight the upcoming April halving, an event historically associated with an increase in the price of Bitcoin. Currently, the price of the main cryptocurrency is slightly above around $67,000.