Bitcoin (BTC) Market Update: BTC-Spot ETF Flows and Trends, with an Eye on Ethereum
BTC-Spot ETF Market Witnesses Positive Shift After Period of Declines On Tuesday, Bitcoin (BTC) increased by 0.44%. Following a surge of 3.77% on Monday, BTC closed the session at $70,063.
Monday’s BTC-spot ETF market flow data (March 25) contributed to these gains. However, the iShares Bitcoin Trust (IBIT) saw moderate net inflows, limiting the uptick in BTC’s value.
On March 25, the BTC-spot ETF market recorded net inflows of $15.7 million. BitMEX Research highlights,
- The Fidelity Wise Origin Bitcoin Fund (FBTC) observed net inflows of $261.8 million, dominating the scene. These inflows were the most significant since March 13.
- The iShares Bitcoin Trust (IBIT) experienced net inflows of $35.5 million, marking one of the lowest since its inception on January 11, 2024. Notably, IBIT’s net inflows were below $100 million for the fourth session in five.
- The Grayscale Bitcoin Trust (GBTC) encountered net outflows of $350.1 million, increasing from $169.9 million on March 22.
Preliminary figures from Farside Investors on Tuesday indicate a consecutive day of net inflows. FBTC’s net inflows of $279.1 million counterbalanced GBTC’s net outflows of $212.3 million. A revival in IBIT net inflows might signal a resurgence in investor interest, potentially propelling BTC towards the all-time high (ATH) of $73,808.
The competition in the BTC-spot ETF market is set to intensify. Eric Balchunas, Bloomberg Intelligence Senior ETF Analyst, shared insights on the latest market entrant,
“DEFI has officially entered the arena with Spot Bitcoin ETF #11. Given the current market dynamics, this latecomer could attract attention with competitive fees.”
Tidal Investments LLC and Hashdex Asset Management Ltd announced the rebranding of the Hashdex Bitcoin Futures ETF to Hashdex Bitcoin ETF, effective March 27, 2024.
CFTC Sparks Hope for an ETH-Spot ETF Market The Commodity Futures Trading Commission’s (CFTC) action against KuCoin for operating an unauthorized digital asset derivatives exchange has intrigued investors. This move is perceived as a step towards classifying Ethereum (ETH) as a commodity. Yet, the SEC’s classification of ETH as a commodity is essential for the potential ETH-spot ETF market.
Post-Ethereum Merge, SEC Chair Gensler labeled ETH as a security, creating uncertainty around an ETH-spot ETF market.
Eric Balchunas remained cautious about an ETH-spot ETF approval,
“Regarding an Eth ETF approval, we maintain a 25% chance, although it’s a very conservative estimate. There seems to be a deliberate lack of engagement rather than mere procrastination, with no positive indicators in sight. While we hope for approval, prospects remain dim.”
SEC Chair Gary Gensler’s remarks in January cautioned against assuming that BTC-spot ETF approvals would lead to broader crypto-spot ETF endorsements.
Nonetheless, the anticipation for an ETH-spot ETF market continues, with ETH being sensitive to related news and discussions.
Bitcoin Analysis
BTC’s position above the 50-day and 200-day EMAs confirms bullish price trends.
A breakthrough above Tuesday’s high of $71,570 could set BTC on a path to the March 14 ATH of $73,808. Surpassing the ATH may open a route to the $75,000 milestone.
Wednesday’s focus remains on BTC-spot ETF market flow data.
A drop below the $69,000 support level might lead bears towards the $64,000 support zone.
The 14-Day RSI of 60.06 suggests BTC could approach the ATH of $73,808 without hitting overbought conditions.
Ethereum Analysis
ETH’s standing above the 50-day and 200-day EMAs indicates bullish price signals.
An ETH surge past the $3,750 mark could pave the way to the $3,835 resistance level.
Investors should keep an eye on ETH-spot ETF-related news.
A descent through the $3,480 support level might drive bears to the 50-day EMA and the $3,244 support mark.
The 14-Day RSI at 54.45 points to a potential ETH move towards the $3,835 resistance before reaching overbought territory.
