Bitcoin ETFs see strong inflows after weeks of losses

Bitcoin ETFs recorded $744 million in inflows after five weeks of outflows, signaling renewed institutional activity despite ongoing market caution.

Bitcoin spot ETFs in the U.S. have finally seen a strong comeback, recording $744 million in net inflows this week after five straight weeks of losses. On March 17 alone, the market experienced its strongest daily gain in over a month, with notable interest from institutional players suggesting that confidence may be returning to the crypto space.

The reversal comes after a tough period in February when ETFs saw over $5 billion in outflows, much of it due to institutional sell-offs during volatile market conditions and uncertain macroeconomic signals. March, however, has brought signs of recovery, as more capital has flowed back into Bitcoin-focused funds over six consecutive trading days.

Leading the rebound is BlackRock’s ETF product, which saw particularly strong buying activity, while Grayscale’s GBTC continued to show outflows, marking a contrast in institutional behavior between ETF providers. Although some platforms remained flat, the overall movement reflects growing interest from large investors.

Crypto figure Zia ul Haque highlighted this shift, suggesting that institutional accumulation may point to behind-the-scenes developments. He noted that many large players sold off earlier in March, contributing to market panic and price dips, but are now quietly accumulating again—a move he sees as a positive sign.

While the inflow trend is encouraging, not all market observers believe this signals a full recovery. Some analysts argue that the recent surge in ETF interest may be linked more to arbitrage strategies than genuine long-term investment. These strategies often involve using the price differences between spot ETFs and futures markets to make low-risk gains, which may inflate the appearance of true demand.

Kyle Chasse, a well-known analyst, explained that while the demand for ETFs is real, a portion of it was purely tactical. Without actual long-term buyers, market volatility could persist, despite the strong inflow numbers. According to him, until committed investors step in, the market may remain uncertain.

Meanwhile, Ethereum ETFs have continued on a negative trend, posting over two weeks of consistent outflows. This contrast highlights differing investor sentiment between the top two cryptocurrencies, with Bitcoin currently viewed as the more stable and favored asset in the eyes of institutions.

Bitcoin’s price has not responded significantly to the influx of ETF investments and remains just below key psychological levels. While investor behavior is shifting, the broader market has yet to show clear signs of a sustained rally. Still, the current movement of funds may hint at changing dynamics ahead.