Market Confidence Returns as Bitcoin ETF Inflows Surge
On March 18, 2025, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their highest single-day net inflows in six weeks, totaling $274.6 million. This marks the most significant positive movement since February 4, suggesting renewed investor confidence following weeks of sustained outflows.
In recent weeks, Bitcoin ETFs have faced heavy selling pressure, with five consecutive weeks of net outflows amounting to approximately $5.4 billion, according to data from SoSoValue. However, Monday’s reversal indicates a potential shift in sentiment among institutional and retail investors.
Institutional Rebalancing and Demand for Lower-Fee ETFs Drive Inflows
Crypto analyst Rachael Lucas pointed to several key factors contributing to Monday’s inflows, including quarter-end portfolio rebalancing by institutional investors and growing demand for ETFs with lower management fees.
“This shift suggests growing confidence, driven by Bitcoin’s price stabilization and renewed institutional interest,” Lucas stated.
For the first time in weeks, all major Bitcoin ETFs recorded net inflows, with no funds experiencing outflows.
Breakdown of ETF Inflows
Among the top gainers:
- Fidelity’s FBTC led the market with $127.3 million in net inflows.
- Ark Invest and 21Shares’ ARKB saw $88.5 million added to the fund.
- BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, reported $42.3 million in inflows.
- Grayscale’s Mini Bitcoin Trust and Bitwise’s BITB also posted positive inflows.
Monday’s trading activity saw approximately $1.87 billion in total daily volume, bringing the cumulative total net inflow for all spot Bitcoin ETFs since their launch to $35.58 billion.
Bitcoin Price Stabilization Amid Continued Volatility
Bitcoin’s price appears to have stabilized at around $83,000 following weeks of high volatility. Earlier this month, the cryptocurrency fluctuated between $78,500 and $94,000, reflecting the market’s sensitivity to macroeconomic conditions and investor sentiment shifts.
Lucas noted that while inflows suggest growing confidence, volatility is likely to persist.
“With quarter-end approaching, investors are closely monitoring positioning shifts. Institutional rebalancing could fuel additional inflows, but any price weakness might trigger another wave of outflows,” she explained.
As Bitcoin ETFs regain traction, market participants will be watching whether this renewed demand sustains or if volatility leads to further outflows in the coming weeks.
