 ▲ Bitcoin (BTC) Exchange-Traded Fund (ETF) |
The spot Bitcoin (BTC) ETF market raised expectations of a strong rebound as $1.44 billion poured in at the beginning of the week, but a $829 million outflow in the latter half showed just how quickly institutional funds can shift back into risk-management mode.
According to investment outlet TradingNews on March 9 (local time), U.S. spot Bitcoin ETFs recorded net weekly inflows of $568 million from March 2 to 6. However, this figure followed $1.44 billion in inflows during the first three trading days of the week, offset by $829 million in redemptions over the final two days. The outlet interpreted this not as consistent buying based on long-term conviction, but rather as a typical institutional strategy of locking in profits during the Iran war and oil price surge, then reducing weekend risk exposure.
The biggest beneficiary was BlackRock’s iShares Bitcoin Trust (IBIT), which posted approximately $660 million in net weekly inflows and closed at $39.13 on March 9. In contrast, Fidelity’s FBTC recorded about $153 million in net outflows over the same period, showing a contrasting trend. Grayscale’s Bitcoin Mini Trust, along with products from Invesco, Franklin, WisdomTree, and VanEck, saw modest inflows, but TradingNews noted that IBIT effectively led the overall market direction.
Geopolitical shocks fueled the buying momentum early in the week. Following the U.S. attack on Iran, Bitcoin surged nearly 11%, rising from $66,356 to $73,648, with ETF inflows occurring almost simultaneously. However, the situation shifted as oil prices briefly soared to $119 per barrel and tensions around the Strait of Hormuz intensified. Elevated oil prices stoked U.S. inflation expectations, reducing the likelihood of interest rate cuts by the Federal Reserve and diminishing the appeal of non-yielding risk assets like Bitcoin. Ultimately, institutions opted to realize profits during the rally and scale back risk ahead of the weekend.
Bitcoin’s price moved in tandem with fund flows. After climbing to $73,648 during the period of concentrated ETF inflows early in the week, it retreated to around $67,777 as outflows emerged later on. The outlet identified developments in the Strait of Hormuz and international oil prices as key variables determining the direction of both Bitcoin and IBIT. If oil prices fall back below $90, institutional inflows could resume; however, if prices stay above $100 for an extended period, weekly net inflows may shrink and any price recovery could be limited.
Flows in other major products were mixed. Spot Ethereum (ETH) ETFs recorded $23.56 million in net inflows during the same week, though disparities among funds were significant: BlackRock’s ETHA saw $133 million in inflows, while Fidelity’s FETH posted $218 million in outflows. Spot Solana (SOL) ETFs recorded $24.05 million in net inflows, whereas spot XRP ETFs posted $4.08 million in net outflows, making XRP the only major asset to record a weekly negative performance. TradingNews described the current market as “a phase where institutional demand remains intact but can quickly retreat in the face of macroeconomic variables.”
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from its use. The information should be interpreted for informational purposes only.