Bitcoin ETFs See First Net Inflows in Weeks, While Ether ETFs Continue to Face Outflows

Spot Bitcoin exchange-traded funds (ETFs) have broken a five-week streak of net outflows, showing signs of recovery as they recorded substantial inflows in the trading week ending March 21. Conversely, Ethereum-based funds extended their streak of outflows for the fourth consecutive week.

Bitcoin ETFs Experience a Strong Rebound

Bitcoin ETFs in the United States saw a significant rebound, logging a net inflow of $744.4 million — the largest inflow in eight weeks. This marks a shift from a bearish trend that had plagued both the crypto market and the broader global economy, which was grappling with concerns over escalating trade tensions and rising recession fears. According to data from SoSoValue, Bitcoin ETFs extended their daily inflow streak to six consecutive days.

The bulk of the inflows came from BlackRock’s iShares Bitcoin Trust (IBIT), which recorded an impressive $537.5 million in inflows. Following closely behind, Fidelity’s Wise Origin Bitcoin Fund (FBTC) contributed $136.5 million. These inflows represent a much-needed boost to Bitcoin after a period of market correction. In January, Bitcoin ETFs saw their largest inflows of the year, totaling $1.96 billion in the week ending January 17. Following that surge, Bitcoin reached an all-time high of $109,000 on January 20, only to dip back into the $78,000 range amid a broader market pullback.

The latest influx has brought Bitcoin’s price back up to around $87,343 at the time of writing, according to CoinGecko, signaling renewed optimism in the market.

Ether ETFs Struggle with Continued Outflows

In contrast, Ethereum ETFs are not seeing the same level of success. Ether-based funds extended their outflow streak to a fourth consecutive week. In the week ending March 21, Ethereum funds saw a net outflow of $102.9 million, with the bulk of the outflows coming from BlackRock’s iShares Ethereum Trust ETF (ETHA), which accounted for $74 million of the total.

Despite the outflows, Ethereum’s price saw a slight rebound, trading at $2,090 at the time of writing, recovering from levels under $2,000, a threshold it had fallen below for the first time in over a year.

A Silver Lining for Ethereum

There was, however, a positive development for Ethereum amid the continued outflows. BlackRock’s BUIDL fund, which primarily invests in tokenized real-world assets (RWAs), increased its holdings in Ether, now boasting a record $1.15 billion worth of Ethereum. This represents a notable increase from about $990 million the previous week, according to data from Token Terminal. The fresh injection of ETH into the BUIDL fund signals growing confidence from BlackRock, the world’s largest asset manager, in Ethereum’s pivotal role as the leading infrastructure for tokenizing real-world assets.

Market Sentiment Improves, but Caution Remains

Investor sentiment in the crypto market has shown signs of improvement over the past week. The Crypto Fear & Greed Index has climbed from 32% to 45%, reflecting a shift toward a more optimistic outlook. Despite this, some experts remain cautious about the sustainability of the market's recent recovery.

QCP Capital, a Singapore-based investment firm, urged investors to proceed with caution. In a March 24 market analysis, QCP Capital warned that upcoming tariff escalations, slated for April 2, could once again put pressure on risk assets, including Bitcoin and Ether.

Conclusion

While Bitcoin ETFs have experienced a much-needed boost with strong net inflows, Ethereum ETFs continue to face a challenging environment marked by continued outflows. However, the recent growth in BlackRock’s BUIDL fund highlights the increasing institutional interest in Ethereum as a key player in the broader blockchain ecosystem. Despite the positive sentiment in the market, experts advise caution as global economic factors may still present challenges for sustained crypto growth.