Spot Bitcoin ETF net inflows drop by 80% as BTC price dips below $69K

BlackRock’s ETF recorded the highest inflows of $350 million, while Grayscale saw $250 million in outflows.

United States-based spot Bitcoin exchange-traded funds (ETFs) recorded one of their lowest net inflow days of just $132 million on March 14 — the lowest level in the past eight trading days and an 80% fall from March 13. 

The Thursday drop marked the second consecutive day of decline. On Wednesday, inflows hit $684 million, a 38.3% drop from the March 12. Tuesday saw record-breaking single-day inflows of $1.05 billion.

The total flow of funds into the ETFs stood at $390 million on March 14, with the Grayscale Bitcoin Trust ETF (GBTC) seeing another $257 million in outflows, bringing net inflows to $132 million. On the same day, the VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund recorded inflows of $13.8 million and $13.7 million, respectively. Despite a significant outflow from GBTC, net flows remained positive on Thursday.

BlackRock’s iShares Bitcoin Trust ETF recorded the largest inflows at $345 million. The cumulative net inflows into the U.S. spot Bitcoin ETF remain significant, nearing the $12 billion mark after 44 days of trading.

The change in investor sentiment comes amid a broader downturn in the crypto market as the BTC price dropped below $69,000.

Related: Bitcoin price nails new $73.6K all-time high as ETFs eat away at supply

The impact of declining ETF inflows correlated with fluctuations in the BTC price. After bullish price action on Wednesday, March 13, BTC posted a new all-time high above $73,000 before reversing course on Thursday.

The price dipped lower on Friday, March 15, to around $66,000 as millions in leveraged positions were liquidated. According to data from CoinGlass, 193,431 traders were liquidated in the past 24 hours, with a total liquidation of $682.14 million.

Market pundits suspect the current market volatility, regulatory uncertainties and macroeconomic factors have made investors cautious. The current decline is also attributed to next week’s Federal Open Market Committee meeting, which could shed some light on the Federal Reserve’s plans for interest rates in the future.

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