Recently, US-based Bitcoin ETFs (exchange-traded funds) have experienced a wave of capital outflows, indicating a declining interest and negative sentiment among investors. Nonetheless, the latest daily performance of these cryptocurrency-linked financial products suggests a potential resurgence in demand from investors.
Bitcoin ETFs Conclude a Positive Week with $83 Million Net Inflow
As per the latest market data, Bitcoin ETFs in the US have continued their positive momentum, achieving a daily net inflow of $83.09 million on Friday, March 21. This new capital marks the sixth consecutive day of daily inflows for these crypto-backed products.
On Friday, only two Bitcoin ETFs recorded any investor activity. BlackRock attracted the highest value, adding $104.99 million to its iShares Bitcoin Trust (ticker IBIT); conversely, Grayscale Bitcoin Trust (GBTC) faced a daily net outflow of $21.9 million to end the week.
Despite this, the $83.09 million inflow contributed to an impressive weekly total of $744.35 million net inflow for the Bitcoin ETFs. This remarkable weekly figure halted a five-week streak of total net outflows from the exchange-traded funds.
Source: SoSoValue
Data from SoSoValue indicates that the US Bitcoin ETF market experienced a total withdrawal of $5.39 billion during those five weeks of outflows. On February 25, specifically, these crypto-based funds faced a collective net outflow exceeding $1.14 billion.
This significant level of outflows from the Bitcoin ETFs has been linked to the uncertain state of US financial markets. Following President Donald Trump’s return to office, the markets have been affected by ongoing fears related to a global trade war, interest rate decisions, and other economic factors.
Bitcoin Price Remains Unresponsive to ETF Inflows
Since their inception, the implications of US Bitcoin ETF performances on the price of Bitcoin have been a topic of debate. As evidenced by the recent weeks of outflows, the price of Bitcoin tends to falter whenever ETF investors exit the market.
Nonetheless, the leading cryptocurrency appears to be stuck in a consolidation phase, despite the renewed demand for US Bitcoin ETFs. Consistent interest in these exchange-traded funds may serve as a positive trigger for the Bitcoin price to resume its upward trajectory.
At the time of this writing, the price of BTC is hovering around the $84,000 level, showing no significant change over the past 24 hours. CoinGecko data reveals that the market leader has experienced nearly stable conditions in the past week.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Shutterstock, chart from TradingView
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