Despite the uncertainty over Ethereum ETFs, the overall projection for Bitcoin is favorable.
The crypto landscape is evolving rapidly, and Bitcoin spot exchange-traded funds (ETFs) are gaining significant momentum since their long-awaited regulatory approval earlier this year.
Said promising development continued until late March, when Bitcoin spot ETFs recorded net inflows of $179 million for the fourth consecutive day, according to data from SoSo Value.
Specifically, cumulative net inflow as of March 28 reached an impressive $12.13 billion, and total daily net inflow amounted to $183 million. This positive trajectory was driven by BlackRock’s iShares Bitcoin ETF, which saw a significant net capital inflow of $95.12 million.
On the other hand, Fidelity’s Wise Origin Bitcoin Fund attracted $69.09 million in net inflows. However, the outlook is not entirely positive. Grayscale’s Bitcoin Trust, an industry leader before the introduction of spot ETFs, saw steady net outflows.
On March 28 alone, approximately $105 million exited the product, highlighting a potential shift in investor preference toward newer, more transparent spot ETFs that offer greater clarity. While Bitcoin spot ETFs saw an impressive launch, it is crucial to note the gradual decline in trading volumes since their peak in early March.
Statistics from The Block reveal that cumulative volumes steadily approached $200 billion, currently standing at $177.9 billion as of March 27. The overall trend is downward after the initial excitement surrounding the launch of these products.
Bitcoin ETF Accumulates 500,000 BTC Worth $35 Billion
Despite declining volumes, assets under management (AUM) and on-chain holdings of spot Bitcoin ETFs have remained stable since peaking earlier this month. HODL15Capital, a leading ETF analyst, reports that nine recently launched Bitcoin spot ETFs quickly amassed a hefty 500,000 BTC since January. Surprisingly, this substantial 2.54% of Bitcoin’s circulating supply amounts to $35 billion in just 54 trading days.
From a broader perspective, all Bitcoin spot funds in the US market, including Grayscale, hold approximately 835,000 BTC, which constitutes around 4% of the total Bitcoin supply. A positive reversal occurred this week, with ETF inflows rebounding to $845 million. This inflow effectively countered the outflow trend seen since March 18, indicating renewed investor confidence in the digital asset space.
To further complicate the situation, BitWise filed an S-1 filing for an Ethereum ETF on March 28. ETF expert Eric Balchunas expressed doubts about its approval in May, estimating a slim probability of 25%. He cited the SEC’s opaque communication as a potential hurdle, possibly leading to further setbacks.
Bullish Signals for Bitcoin
Despite the uncertainty over Ethereum ETFs, the overall projection for Bitcoin is favorable. Currently trading at $69870, BTC price maintains a comfortable position above key technical indicators, the 50-day and 200-day exponential moving averages (EMA), affirming an upward trajectory.
Bitcoin is up 22% in the last 30 days and is still on the momentum of an upward trajectory. A resurgence to the $72,000 level could catalyze a move towards the March 14 all-time high (ATH) of $73,808. A breakout from this point could push Bitcoin towards the $75,000 milestone.
In the coming days, market participants should closely monitor BTC spot ETF market rumors, SEC activity, and the US economic calendar, which could influence price movements. While a return to the ATH seems possible, a drop below the crucial $69,000 support level could signal a correction towards the $64,000 support zone.
By Audy Castaneda
