Bitcoin price correction over? BTC ETFs book millions of inflows

On a weekly basis, Bitcoin (BTC) is up ten percent and at the time of writing is back above USD 70,000. The influx of capital into the crypto market has not left the demand for Bitcoin ETFs unaffected. Yesterday, Tuesday, March 26, a total of USD 418 million flowed into BTC index funds.

USD 418 million flowed into Bitcoin ETFs yesterday, March 26. Source: Farside Investors

This is notable because the Grayscale Bitcoin Trust recorded outflows of $212 million. In other words, the mutual funds from BlackRock (IBIT), Fidelity (FBTC) and Bitwise (BITB) offset the large outflows from Grayscale with significant inflows. In addition, March 26 was the second consecutive day of net inflows. This is according to data from Farside Investors.

Asset growth in Bitcoin ETFs is usually bullish: demand for BTC is increasing - in this case in the form of index funds. The trend of Grayscale outflows continues. At 339,566 BTC, the fund still holds the lion's share of coins in ETFs. However, the gap with the competition is narrowing. In second place is BlackRock with 245,951 Bitcoin.

Bitcoin from ETFs are becoming more widespread. Source: Apollo

Grayscale has the highest fees among ETFs at 1.5 percent. All other ETFs charge fees of less than 0.5 percent.

Within three months, Grayscale has lost nearly half of its original BTC holdings. If the outflow continues at the same rate, the company will run out of coins by the end of the year.

This could rekindle demand on the open market for the scarce commodity Bitcoin - and boost the price.