Spot Bitcoin exchange-traded funds (ETFs) based in the United States experienced a significant decline in net inflows on March 14, with only $132 million recorded. This marks the lowest level in the past eight trading days and an 80% decrease from the previous day, March 13.
The drop on Thursday was the second consecutive day of decline, following a 38.3% decrease in inflows on Wednesday, which amounted to $684 million. However, Tuesday saw record-breaking single-day inflows of $1.05 billion.
The total flow of funds into the ETFs on March 14 was $390 million, with the Grayscale Bitcoin Trust ETF (GBTC) experiencing outflows of $257 million. This brought the net inflows to $132 million. On the same day, the VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund saw inflows of $13.8 million and $13.7 million, respectively. Despite the significant outflow from GBTC, net flows remained positive on Thursday.
The iShares Bitcoin Trust ETF from BlackRock recorded the largest inflows at $345 million. Overall, the cumulative net inflows into the U.S. spot Bitcoin ETF are approaching the $12 billion mark after 44 days of trading.
The change in investor sentiment coincides with a broader downturn in the crypto market, as the price of BTC dropped below $69,000.
The declining ETF inflows have had an impact on the BTC price. After experiencing bullish price action on March 13, BTC reached a new all-time high above $73,000 before reversing course on Thursday.
On Friday, March 15, the price dipped to around $66,000, resulting in the liquidation of millions of leveraged positions. CoinGlass data shows that 193,431 traders were liquidated in the past 24 hours, with a total liquidation amount of $682.14 million.
Market experts believe that the current market volatility, regulatory uncertainties, and macroeconomic factors have made investors more cautious. The current decline in inflows is also attributed to the upcoming Federal Open Market Committee meeting, which may provide insights into the Federal Reserve’s plans for interest rates in the future.
The Bitcoin Man, X Hall of Flame, predicts that China will intensify the Bitcoin bull run, with the price reaching $1 million by 2028.
Bitcoin ETF sees an 80% decrease in net inflows as BTC price falls below $69K