The Nasdaq-listed spot bitcoin exchange-traded funds (ETFs) saw a turnaround on Monday, registering inflows totaling $15.4 million after a five-day streak of outflows. Fidelity’s FBTC led the inflows with $261.8 million, followed by BlackRock’s IBIT with $35.5 million. Other funds like BITB, BTCO, EZBC, and BRRR also saw inflows ranging between $11 million and $20 million. However, Grayscale’s ETF (GBTC) continued to struggle, losing just over $350 million.
Since the debut of nearly a dozen spot ETFs in the U.S. on Jan. 11, allowing investors to gain exposure to bitcoin without the hassle of owning and storing the digital asset, prices of bitcoin have risen over 50% to $70,750. The spot ETFs invest directly in bitcoin, eliminating the need to rollover positions, unlike futures-based ETFs that were launched in October 2021. With quarter-end flows potentially stronger than usual, there is anticipation that the cryptocurrency’s price could reach new highs.
Markus Thielen, founder of 10x Research, pointed out that for bitcoin to make another aggressive move higher, spot ETF inflows and issuance of dollar-pegged stablecoin tether (USDT) need to increase. Tether is commonly used as a funding currency in the crypto spot and derivatives markets. Thielen highlighted the importance of positive flows and stablecoin issuance in determining the direction of bitcoin’s rally, stating that if these factors do not pick up, the burden of the rally would fall on futures traders.
