Bitcoin ETFs Add $254M On Thursday; BlackRock Buys, Fidelity & Ark21 Sell

Key Insights:

• Bitcoin ETFs extended the net inflows streak on Thursday; BlackRock marked the day’s biggest purchase with its inflow of $275.82 million.
• Three of the 12 BTC ETFs scooped BTC on Thursday, while two funds sold BTC; the rest chose to sit out.
• Bitcoin price dropped further from Wednesday’s close, reflecting a 2.54% slump since Thursday’s close.

Bitcoin spot exchange-traded funds (ETFs) posted net inflows of $254.46 million, with outflows weakening the inflow pressure. Bitcoin continued its descent below the $68,000 mark after Wednesday’s sharp rise.

Bitcoin ETFs Show Strong Net Inflows Despite $96M Sell-off

Bitcoin ETFs posted total inflows of $342.8 million with BlackRock (NASDAQ: IBIT), Bitwise (NYSE: BITB), and Grayscale (NYSE: BTC) among the buyers. Meanwhile, Fidelity (CBOE: FBTC) and Ark & 21Shares (CBOE: ARKB) shed $96 million, dampening net inflows.

IBIT posted strong inflows of $275.82 million, BITB posted inflows of $69.01 million, and Grayscale’s BTC added a modest $5.97 million.

With Thursday’s inflows, Bitcoin ETFs have marked a three-day inflow streak. While the week’s net flow turned positive on Wednesday, the monthly flow remains net negative. February’s net outflow stands at $178.97 million; weekly net inflow stands at $814.86 million so far.

Additionally, this week, the flows ending Thursday totaled $54.83 billion. The trading volume is higher than the previous two weeks, and there’s one more day in this trading week.

BTC Price Struggles Below Feb 25th Closing Price

BTC ETFs’ inflows came in as Bitcoin struggled to hold $67,000, let alone revisit $70,000. Bitcoin’s trendline fakeout on Wednesday is yet to be invalidated.

Ted Pillows, a regular crypto market commentator, noted on X that Bitcoin price might produce a fake breakout from a resistance level. The problem Pillows was trying to highlight is that this breakout might be falsely perceived as a trend reversal.

Notably, Willy Woo, another regular crypto market commentator, noted that the selling pressure that brought BTC down to sub-$70,000 levels is ‘seemingly’ exhausted.

He added that, however, a rebound to the mid-$70Ks would likely be rejected. Woo explained: ‘This is because the broader regime is heavily bearish, with both spot and futures liquidity deteriorating. I’ve never seen BTC rally when both sources of liquidity are bearish.’

Bitcoin ETFs might have posted a notable net inflow streak, but that is not a strong sign of a trend reversal. Apart from the technical insights from Willy Woo and Ted Pillows, exchange balances show that Bitcoin entered major exchanges over the last 30 days.

Overall, 9,711 BTC entered centralized exchanges in the last 30 days, while in the last 24 hours, there has been an outflow of over 6,500 BTC.

However, over the last 24 hours, Binance, Bitfinex, and Kraken saw BTC outflows. Note that Coinbase serves as the primary custodian of Bitcoin held by US citizens and institutions. While this data is not a standalone indicator of BTC sell pressure, it does highlight strong activity.

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