By Key Points
- Bitcoin ETFs recorded their biggest daily inflow in 41 days, totaling $274.6 million.
- Fidelity’s Bitcoin ETF led with $127.28 million, while Ethereum ETFs continued outflows.
- Analysts warn that one strong inflow day doesn’t confirm a trend.
- Institutional investors may be driving this movement rather than retail demand.
After a prolonged streak of outflows, Bitcoin exchange-traded funds (ETFs) have finally witnessed a turnaround. On March 17, Bitcoin ETFs recorded a net inflow of $274.6 million—the highest single-day inflow in over 40 days.
This comes after weeks of bearish sentiment that saw investors pulling billions out of the market. The sudden influx of capital raises questions: Is this the beginning of a sustained recovery, or just a temporary spike driven by institutional players?
Fidelity’s Bitcoin ETF (FBTC) led the charge with $127.28 million in inflows, followed by ARK Invest’s ARKB, which gained $88.5 million. BlackRock’s iShares Bitcoin Trust (IBIT) also saw a respectable $42.3 million inflow.
Bitcoin ETF Inflows. Source: Farside Investors – Techtoken
However, the Grayscale Bitcoin Trust (GBTC), which has been hemorrhaging funds since converting into a spot Bitcoin ETF, remained flat at $0 inflows. Meanwhile, Ethereum-based spot ETFs continued their downward trend, marking their ninth consecutive day of outflows with a $7.3 million decline.
3️⃣ Bitcoin spot ETFs attract $275 million in inflows, while Ethereum ETFs experience outflows, reflecting shifting investor preferences.
— Mighty (@RicardoMighty) March 18, 2025
This divergence suggests that while Bitcoin ETFs may be regaining investor confidence, Ethereum ETFs are still struggling to attract capital. Some analysts suggest that the Bitcoin inflows may be linked to institutional trading strategies rather than retail investor interest.
The recent surge in Bitcoin ETFs also aligns with other major movements in the market. For example, a large whale short on Hyperliquid triggered a massive $420 million battle, highlighting the volatility in the crypto space. Read more about it here.
🚀 US spot #Bitcoin ETFs see the largest daily net inflows in 6 weeks, totaling $274 million! The crypto market is buzzing as institutional interest surges. Could this signal the start of a new bullish trend? 📈💰 #ETF pic.twitter.com/0uEqX6j7Ub
— Liore (@Petux159809) March 18, 2025
Is Bitcoin ETF Demand Really Back?
Despite the impressive single-day inflow, experts caution against calling it a comeback just yet. Bitcoin ETFs have suffered over $4.5 billion in net outflows in the past four weeks, reflecting broader market uncertainty.
The crypto market as a whole has been under pressure, with total outflows surpassing $800 million last week alone. Regulatory concerns, profit-taking, and macroeconomic uncertainties have all contributed to investor hesitation.
Crypto entrepreneur Kyle Chassé argues that hedge funds and institutional investors play a major role in Bitcoin ETF flows, often rotating funds strategically for arbitrage rather than genuine long-term investment.
If this is true, the latest ETF inflows might not indicate new buyers entering the market but rather institutions recycling capital to take advantage of short-term price movements.
Adding to the uncertainty, investors are keeping an eye on the Federal Reserve’s upcoming policy decisions. Some are speculating about a potential shift towards monetary easing, but analysts warn that such expectations may be premature.
Financial expert Nic Puckrin has pointed out that historically, quantitative easing (QE) begins when interest rates are near zero. Since the Fed’s current rate stands at 4.25-4.5%, a major liquidity injection seems unlikely in the near term.
Meanwhile, MicroStrategy has continued its Bitcoin buying spree, recently purchasing 130 more BTC for $10.8 million, signaling strong institutional interest despite market uncertainty. Check out the details here.
Bitcoin Price and Market Sentiment
The sudden rise in Bitcoin ETF inflows comes at a time when Bitcoin’s price has been reacting positively to macroeconomic shifts. Recently, U.S. inflation dropped to 2.8%, which helped fuel a market rally. Read how inflation impacts Bitcoin prices.
However, Ethereum’s future growth remains uncertain, as spot Ethereum ETFs continue to face outflows. While some investors believe Ethereum’s long-term potential remains strong, others are shifting their focus to Bitcoin. Explore Ethereum’s future prospects here.
With institutional trading strategies at play and macroeconomic factors still in flux, Bitcoin ETF inflows could see further volatility in the coming weeks. While Monday’s surge is a positive sign, it remains to be seen whether this marks the start of a sustained recovery or just a brief relief rally.
7/ Big takeaway?
•We don’t know if the pain is over yet, but it’s likely to end once this trade fully unwinds.
•The ETF “demand” was real, but some of it was purely for arbitrage. There was genuine demand for owning BTC, just not as much as we were led to believe.
•Until real…— Kyle Chassé / DD🐸 (@kyle_chasse) February 27, 2025
Additionally, the convergence of blockchain and traditional finance (TradFi) is gaining traction, with new projects merging DeFi and institutional finance to create innovative financial solutions. Read more about blockchain convergence here.
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