Spot Bitcoin ETFs traded in the USA completed March with a total net inflow of 1.32 billion dollars. According to the latest data, this is the first monthly net inflow recorded in ETFs since October.
The change that comes after a long period of decline
Spot Bitcoin ETFs witnessed net outflows for four consecutive months from October to March. There was a fund outflow of $3.5 billion in November, $1.1 billion in December, $1.6 billion in January and $206 million in February. In March, the situation was reversed. According to experts, during this four-month period of outflows, Bitcoin lost approximately 50 percent of its value from its peak of 126 thousand dollars in October.
March also coincided with the first positive monthly close for Bitcoin in the last six months. This development led to increased expectations that the movement in the market might change direction.
Total assets of funds and investor costs
While the total amount of Bitcoin held by ETFs was 1.38 million BTC in October, it later decreased to 1.28 million BTC. This decrease amounted to approximately 7 percent. However, by the end of March, ETFs’ portfolios increased again, reaching approximately 1.31 million BTC.
Despite the decline in prices, the amount of assets managed by the funds did not decrease significantly. In contrast, the average cost to ETF investors remains above the current spot market price. According to calculations, while the average entry price of investors was around 84 thousand dollars, the last spot price was around 68 thousand dollars.
Information shared by social valuation and on-chain data providers showed that the majority of fund participants have suffered losses on their assets for now. However, the recovery in portfolio size was interpreted as investors starting to trust the market again.
The performance of ETF products in the cryptocurrency market is considered an important indicator of investor sentiment and interest in the market. March figures pointed out a period in which new inflows to funds gained momentum despite the fluctuating course.
