Spot bitcoin exchange-traded funds (ETFs) traded in the US have seen a significant decline in investor interest in the second half of March, after a strong start since the beginning of the year. According to the latest data, a total outflow of $171.12 million was realized from 11 spot bitcoin ETFs of US origin. This amount was recorded as the highest single-day output of the last three weeks.
Millions of outflows from leading funds
BlackRock’s IBIT product, one of the funds with the largest volume, suffered an investment loss of $41.92 million in a single day. FBTC, GBTC, BITB and ARKB, which are among other important funds, came to the fore with outflows of 20 to 30 million dollars each.
During the first two months of the year, a serious pace of inflows was observed in these types of funds. Especially from the end of February to mid-March, the total inflow amount exceeded 2 billion dollars. But in the second half of March, the situation reversed; Last week, there was only an inflow of 95.8 million dollars, and as of this week, a total net outflow of 70.71 million dollars was recorded.
This decline marks a change in the dynamics of institutional demand for spot bitcoin ETFs, especially recently. The slowdown in the speed of money flowing into funds caused a hesitant attitude in the market.
Institutional investors are being more cautious
These ETFs, launched in January 2024, provide investors with the advantage of benefiting from Bitcoin price movements only through the fund, without directly owning cryptocurrency. These products, which were in high demand in the first period, witnessed a cautious change in the attitude of institutional investors as of March.
The contraction in trading volume can be interpreted as some investors starting to realize profits. Experts state that whether this trend will be temporary or permanent will be determined by the direction in which interest in funds will develop in the coming days.
In the statement made by BlackRock, it was shared that it took a strategic approach against short-term changes in investor behavior and closely monitored the developments in the market.
On the other hand, in an environment where macroeconomic fluctuations continue, it is noteworthy that the Bitcoin price managed to hold on close to the level of 70 thousand dollars. It is considered that if the slowdown in demand continues, the pressure on prices may increase.
This slowdown in capital movements of investment funds and the change in the course of interest in funds may also have an impact on the general trends of the cryptocurrency market.
