Bitcoin ETFs Record 80% Drop in Net Inflows as BTC Crashes Below $70,000

Spot Bitcoin ETFs have recorded a massive 80% collapse in net inflows over the past day, coinciding with the recent crash in Bitcoin’s price below $70,000.

Despite the drop in inflows, these investment products recorded a ninth consecutive day of daily net positive flows on March 14, largely buoyed by the impressive capital garnered by the BlackRock iShares Bitcoin Trust (IBIT).

Data from BitMEX Research shows that all ten Bitcoin ETFs saw a cumulative inflow of $132.5 million yesterday. While this result sustained its positive streak for nine days, it represents a massive collapse from previous figures. 

[1/4] Bitcoin ETF Flow – 14 March 2024

All data in. $132m net inflow for the day. Strong result, but much weaker than earlier in the week. Blackrock has $345m of inflow, GBTC $257m outflow, while other providers had much lower flow. pic.twitter.com/8tl2H3BTNY

— BitMEX Research (@BitMEXResearch) March 15, 2024

For context, the $132.5 million inflow marked an 80.6% decline from the $683.7 million capital flow the market recorded on March 13. The latest figure also represents a massive 87% slump from the all-time high daily net inflow of $1.045 billion witnessed on March 12.

Significantly, these capital flows have continued to drop since the $1.045 billion peak, but the market has sustained the inflows, indicating that the demand for these products, and by extension, Bitcoin, has not recorded a slump drastic enough to flip the switch.

BlackRock Leads with $345M

BlackRock’s IBIT contributed the most to yesterday’s positive flow, as the product witnessed $345.4 million inflows, towering over the nine other investment vehicles by a large margin. IBIT’s capital flow overshadowed the $257.1 million outflows from the Grayscale Bitcoin Trust (GBTC).

The VanEck Bitcoin Trust ETF (HODL) saw the second-largest inflow, pegged at $13.8 million. VanEck’s HODL saw an uptick in capital flows after it introduced its fee waiver. The Fidelity Wise Origin Bitcoin Fund (FBTC) also contributed yesterday with $13.7 million in inflows.

Following the latest round of capital flows, the spot Bitcoin ETFs have now recorded a cumulative all-time inflow of $11.97 billion since they started trading on Jan. 11. Trade volume has also seen an uptick, hitting a cumulative $65 billion as of yesterday.

Meanwhile, the latest result in capital flows comes amid a recent correction Bitcoin price has witnessed. After collapsing 2.30% yesterday, the asset has now dropped 4.12% today, breaking below the $70,000 and $69,000 territories to trade at $68,584.