Bitcoin ETF

Bitcoin

Following a week of net outflows, the spot Bitcoin ETF market has rebounded with impressive net inflows this week, highlighting a growing investor confidence in Bitcoin and its associated financial products. This week’s market activities have shown a remarkable reversal from the previous <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-reclaims-66000-despite-4-day-etf-outflow-streak/" target="_blank" rel="noopener ">5-day net outflow streak</a>, with Tuesday witnessing a substantial net inflow of $480 million, followed by $243.5 million on Wednesday. 
Yesterday’s resurgence in investor interest was notably boosted by Blackrock’s massive inflow of $323.8 million, effectively offsetting Grayscale GBTC’s $299.8 million outflows. Moreover, Ark Invest’s ARKB reported its best day yet, with $200 million in inflows, despite Fidelity experiencing its worst day with a mere $1.5 million in outflows. Nevertheless, Fidelity managed to bounce back with significant inflows of $261 million and $279 million on Monday and Tuesday, respectively. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
 Yesterday's ETF flows were positive for $243.5 million. 
 Blackrock finally woke up again for $323.8 million completely cancelling out <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow">$GBTC</a>'s $299.8 million outflows. 
 Ark had their best day yet with $200 million. Fidelity had its worst day with $1.5 million. 
 Price dumped on… <a href="https://t.co/LLChkITN7q" rel="nofollow">pic.twitter.com/LLChkITN7q</a> 
 — WhalePanda (@WhalePanda) <a href="https://twitter.com/WhalePanda/status/1773206774599889207?ref_src=twsrc%5Etfw" rel="nofollow">March 28, 2024</a>
</blockquote> 
<h2 id="1-down-99-to-go-for-bitcoin-etfs">1% Down, 99% To Go For Bitcoin ETFs</h2> 
However, according to Bitwise Chief Investment Officer (CIO) Matt Hougan, this is just the mere beginning of what is to come in the upcoming months. Hougan’s <a href="https://twitter.com/BitwiseInvest/status/1773005602752491548" target="_blank" rel="noopener nofollow">commentary</a>, part of his weekly memo to investment professionals, sheds light on the current market dynamics and the colossal potential that lies ahead. “1% Down; 99% to Go,” Hougan wrote, highlighting the nascent yet promising journey of Bitcoin ETFs. 
Lately, the market has been characterized by its volatility, with Bitcoin’s price oscillating between $60,000 and $70,000. Hougan advises a calm and long-term perspective amidst this fluctuation, especially as the sector anticipates the upcoming <a href="https://www.newsbtc.com/news/bitcoin/when-is-the-next-btc-halving-date-bitcoin-halving-guide/" target="_blank" rel="noopener ">Bitcoin halving</a> around April 20, the approval of Bitcoin ETFs on national account platforms, and the <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-etf-floodgates-just-opening-bitwise-cio/" target="_blank" rel="noopener ">soon-to-come completion</a> of due diligence by various investment committees. 
Despite the current sideways movement of Bitcoin’s price, Hougan remains bullish about its long-term trajectory. “Bitcoin is in a raging bull market,” he asserts, noting a nearly 300% increase over the past 15 months. The launch of spot Bitcoin ETFs in January has marked a significant milestone, opening up the Bitcoin market to investment professionals on an unprecedented scale. 
Hougan’s analysis points to a profound shift as global wealth managers, who collectively control over $100 trillion, begin to explore investments in the “digital gold.” He suggests that even a conservative allocation of 1% of their portfolios to Bitcoin could result in approximately $1 trillion of inflows into the space. 
This perspective is backed by historical data showing that even a 2.5% allocation to Bitcoin has enhanced the risk-adjusted returns of traditional 60/40 portfolios in every three-year period of Bitcoin’s history. 
The recent inflows into Bitcoin ETFs, though impressive, are seen by Hougan as merely the beginning of a much larger movement. “We are all excited about the $12 billion that has flowed into ETFs since January. And it is exciting: Collectively, the most successful ETF launch of all time..But imagine global wealth managers allocate just 1% of their portfolios to bitcoin on average,” Hougan elaborates, emphasizing the scale of potential growth awaiting the cryptocurrency market. He concludes: 
<blockquote>
 Think about the implications. […] A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment. 1% down, 99% to go.
</blockquote> 
At press time, BTC traded at $70,644. 
<img loading="lazy" decoding="async" class="wp-image-600119 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673" alt="Bitcoin price" width="3628" height="1673" srcset="https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-28_09-37-39.png?resize=3628%2C1673?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Bitcoin ETF Inflows Could Eclipse $1 Trillion, Predicts Bitwise CIO

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