Bitcoin ETFs See First Net Inflows in Weeks as Ether Outflows Persist
Spot Bitcoin exchange-traded funds (ETFs) in the United States have ended a five-week streak of net outflows, recording significant inflows during the trading week ending March 21.
Bitcoin ETFs Bounce Back
Bitcoin ETFs saw net inflows totaling $744.4 million, marking the largest weekly inflow in eight weeks. This positive momentum extended the daily inflow streak to six consecutive days, according to data from SoSoValue.
The majority of inflows came from two major funds:
- BlackRock’s iShares Bitcoin Trust (IBIT): $537.5 million
- Fidelity’s Wise Origin Bitcoin Fund (FBTC): $136.5 million
This renewed investor interest follows a bearish period driven by global economic concerns, including escalating trade tensions and recession fears. Bitcoin previously reached an all-time high of $109,000 on January 20, coinciding with the inauguration of U.S. President Donald Trump, before correcting sharply. Currently, Bitcoin is trading around $87,343, according to CoinGecko.
Ethereum ETFs Continue to Struggle
In contrast, Ethereum ETFs experienced continued outflows, marking their fourth consecutive week of net losses. Ethereum funds recorded a net outflow of $102.9 million, with BlackRock’s iShares Ethereum Trust ETF (ETHA) accounting for $74 million of this total.
Despite these outflows, Ethereum’s price has slightly recovered, trading at approximately $2,090 after recently dipping below $2,000 for the first time in over a year.
Institutional Interest in Ethereum Remains Strong
Despite ETF outflows, institutional interest in Ethereum remains robust. BlackRock’s BUIDL fund, focused on tokenized real-world assets (RWAs), now holds a record $1.15 billion worth of Ether, up from approximately $990 million the previous week. This increase highlights growing institutional confidence in Ethereum as a key infrastructure for asset tokenization.
Market Sentiment Improves, but Caution Remains
The Crypto Fear & Greed Index improved to 45% from 32% last week, indicating better market sentiment. However, analysts remain cautious about the sustainability of this recovery.
Singapore-based investment firm QCP Capital warned investors about potential volatility ahead, noting upcoming tariff escalations scheduled for April 2 could negatively impact risk assets.
Quick Summary
- Bitcoin ETFs recorded significant inflows after five weeks of outflows.
- Ethereum ETFs continued to see net outflows for the fourth consecutive week.
- Institutional interest in Ethereum remains strong despite ETF outflows.
- Market sentiment has improved, but analysts advise caution due to ongoing economic uncertainties.
