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Bitcoin ETFs Add $1.1 Billion in Fresh Inflows as Market Sentiment Improves

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Highlights:

  • Bitcoin investment funds collected 1.1 billion in inflows during the latest trading week. 
  • On Wednesday alone, funds added $462 million.
  • Bitcoin ETFs reached $60 billion in inflows in two years, while gold ETFs took fifteen years to reach this milestone.

US-listed spot Bitcoin (BTC) exchange-traded funds (ETFs) recorded strong inflows this week, reaching $1.1 billion. On Wednesday alone, funds added $462 million, marking the third straight day of inflows. The rise came as Bitcoin briefly moved above $73,000 before pulling back.

On March 4, BlackRock’s iShares Bitcoin Trust (IBIT) attracted the largest share of inflows, bringing in about $307 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $48 million, while Grayscale’s Bitcoin Mini Trust added $32 million. Nearly all spot Bitcoin ETFs recorded fresh inflows during the period, except CoinShares’ Bitcoin ETF (BRRR), which saw no new capital.

Bitcoin ETF Inflows Recover After Weeks of Heavy Outflows

The latest inflows highlight a reversal after weeks of weakness. Spot Bitcoin ETFs had previously lost $3.8 billion during a five-week outflow streak. Year-to-date flows now stand at $700 million, showing recovery signs. Analysts noted that most Bitcoin ETFs have turned net positive for the year. 

Ether funds also benefited from the improved sentiment. They attracted $169 million in inflows, a sharp turnaround from the $11 million outflow recorded just a day earlier. This suggests broader optimism across crypto-linked investment products.

Bloomberg ETF analyst Eric Balchunas noted that most Bitcoin exchange-traded funds have moved into positive territory for year-to-date flows as of Tuesday. However, a few products are still showing net outflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) has recorded about $1.1 billion in withdrawals so far. Meanwhile, Grayscale Bitcoin Trust (GBTC) and ARK 21Shares Bitcoin ETF (ARKB) have posted outflows of roughly $648 million and $162 million, respectively.

BTC ETFs Match Gold ETFs’ Fifteen-Year Inflows in Under Two Years

The Bitcoin ETFs have managed to reach an impressive milestone in the field of finance. In just under two years of the launch of these ETFs, the products have managed to attract almost the same amount of net inflows that the Gold ETFs took fifteen years to attract. This is an indication of the pace at which the BTC ETFs have gained traction in the market.

According to recent market data, the spot Bitcoin ETFs have managed to attract an aggregate of $60 billion in net inflows since their launch in early 2024. This places the BTC ETFs at the same level as the amount of money that the Gold ETFs attracted in the first fifteen years of their launch.

Institutional demand through ETFs is starting to stabilize after a rough start to the year. However, analysts at Bitfinex warned earlier this week that ETF inflows do not always lead to immediate buying in the spot market. Authorized participants can create and short ETF shares before acquiring the underlying Bitcoin, which can delay the effect of these flows on price.

Still, spot ETF inflows and Bitcoin staying strong during world tensions show that it is becoming more important in the market. At the time of writing, BTC was trading at $72,748, reflecting a 2% increase in the past 24 hours.

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