Spot Bitcoin ETFs Face Outflows, Dampening Bullish Outlook

Last week proved challenging for Spot Bitcoin ETFs, as they consistently failed to attract substantial inflows. Consequently, these ETFs experienced consecutive daily outflows, signaling a potential decline in bullish sentiment among institutional traders. This downturn is reflected in Bitcoin's price, which fell to $61,370 during the week.

Spot Bitcoin ETFs: Outflows Dampen Bullish Sentiment?

Institutional investors seem to be losing their zeal for Spot Bitcoin ETFs, as evidenced by a string of consecutive outflows last week. These outflows have raised concerns about waning bullish sentiment and may have contributed to Bitcoin's recent price dip to $61,370.

Bitcoin ETFs: From Record Inflows to Sustained Outflows

In February and early March, Spot Bitcoin ETFs basked in the glory of investor enthusiasm during Bitcoin's bull run, setting trading records for ETFs in the US. However, this fervor has now reversed, with five consecutive days of outflows eclipsing a four-day outflow streak in January.

BitMEX Research Reveals Outflow Surge

Data from BitMEX Research paints a grim picture: five days of consecutive outflows totaling $154.4 million, $326.2 million, $261.6 million, $93.1 million, and $51.6 million. Grayscale's GBTC also set a new record for daily outflows, with redemptions of 9,539.7 BTC worth over $642.5 million on Monday, the largest single-day outflow in GBTC's history.

Grayscale's Outflow Not Surprising, but Others Falter

Grayscale's outflows come as no surprise, given its consistent daily outflows since its inception. However, the weak inflows into other Spot ETFs, such as BlackRock (IBIT) and Fidelity (FBTC), which have historically offset GBTC's outflows, are more concerning.

BlackRock and Fidelity Hit Inflow Lows

BlackRock (IBIT), which has consistently attracted the lion's share of inflows, recorded a new inflow low of $18.9 million on Friday, March 22. Fidelity, too, saw its inflow dwindle to $5.9 million on Monday, March 18.

Bitcoin Price: Can It Recover?

The question on everyone's mind is whether Bitcoin can regain its momentum and reclaim its all-time high above $73,000. Continued outflows from Spot Bitcoin ETFs could weigh further on Bitcoin's price.

Trading Volume Remains Robust

Despite the weak inflows, trading volume remained substantial throughout the week, indicating that the lack of enthusiasm for Spot Bitcoin ETFs is not necessarily indicative of a lack of interest in Bitcoin itself. The cumulative trading volume of the 10 ETFs now stands at $164 billion, with $22.71 billion traded last week.

Crucial Days Ahead for Bitcoin

The coming days will be pivotal in determining Bitcoin's next major move. Despite the recent setbacks, Bitcoin still has the potential to rebound, especially with the approaching Bitcoin halving event.