According to data provided by Farside Investors, a leading U.K.-based investment management firm, spot Bitcoin ETF products faced a significant net outflow of $326.2 million on March 19, marking the second consecutive day of daily outflows.
This comes on the heels of a notable surge just a week prior, where the ETFs observed record inflows exceeding $1 billion on March 12. However, the trend took a sharp turn on March 18, ending a 10-day streak of persistent inflows with capital outflows totaling $154.3 million. These consecutive days of outflows reflect the prevailing bearish sentiment amid Bitcoin’s recent price downturn.
Bitcoin, having reached an all-time high of $73,750 on March 14, has since experienced a consistent decline, erasing over 11% of its value in the past week. This downward trajectory has amplified the waning bullish pressure in the market.
The latest outflow of $326 million from spot Bitcoin ETFs marks the largest daily net flow, significantly surpassing the previous record of $158.4 million on Jan. 24. Notably, the Grayscale Bitcoin Trust (GBTC) accounted for the majority of these outflows, with a recorded $443 million in capital exiting.
However, the bearish sentiment on March 19 stemmed not from heightened outflows but rather from diminished inflows. Data indicates that excluding products from BlackRock, Fidelity Investments, and Bitwise, all other products recorded a net flow of $0. While investors did not significantly withdraw their funds, the ETFs failed to procure more BTC.
Even with a combined inflow of $117.3 million in BlackRock’s IBIT, Fidelity Investments’ FBTC, and Bitwise’s BITB, this was insufficient to offset the $443 million outflow recorded by Grayscale’s ETF.
Markus Thielen, founder of 10x Research, had foreseen this shift in a recent statement, predicting a potential drop in capital inflows as Bitcoin corrects the gains from its latest market uptrend.
