Bitcoin ETF Inflows Surge to $274M Amid Price Stabilization

Bitcoin ETF Inflows Skyrocket as Investor Confidence Grows

Bitcoin ETF– On Monday, U.S. spot bitcoin exchange-traded funds (ETFs) recorded $274.6 million in net daily inflows, the highest since February 4. Despite a recent period of significant selling pressure, the funds experienced a notable rebound, signaling renewed investor confidence.

Bitcoin ETFs had seen five weeks of consecutive net outflows, totaling around $5.4 billion, according to data from SoSoValue. However, the reversal of this trend suggests that bitcoin’s price stabilization and increased institutional interest have started to fuel positive sentiment.

Rachael Lucas, a crypto analyst at BTC Markets, attributed the recent inflows to factors like quarter-end institutional portfolio rebalancing and increased demand for lower-fee ETFs. She mentioned that this combination of factors helped boost investor confidence, resulting in the positive flows observed on Monday.

Leading Bitcoin ETFs Report Strong Inflows

On Monday, five bitcoin ETFs reported net inflows, with no fund experiencing outflows. Fidelity’s FBTC led the charge with $127.3 million in inflows, followed by Ark and 21Shares’ ARKB with $88.5 million. BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, saw $42.3 million in inflows. Other funds like Grayscale’s Mini Bitcoin Trust and Bitwise’s BITB also reported gains.

Bitcoin’s price has stabilized around $83,000 after experiencing significant volatility earlier in the month, fluctuating between $78,500 and $94,000. However, Lucas warned that volatility is expected to continue. “Institutional rebalancing could fuel additional inflows, but any price weakness might trigger another wave of outflows,” she said.

Overall, the total daily volume on Monday reached around $1.87 billion, bringing the cumulative net inflows to $35.58 billion since these ETFs‘ listing.

As bitcoin continues to show signs of stabilization, the growing interest in lower-fee ETFs and institutional rebalancing could provide further momentum to the market. However, market participants should stay vigilant, as price fluctuations remain a key factor to watch.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.