On March 28th, the ARK 21Shares Bitcoin ETF experienced an extraordinary influx of $243.5 million in investments, marking a significant increase of over five times its typical daily intake, as Bitcoin approached the $72,000 mark.
Insights from Farside Investors indicate that on March 27th, the inflow into the ARK 21Shares Bitcoin ETF surged to four times its average daily inflow of $43.9 million since its launch on January 11th.
This surge nearly tripled the previous day’s inflow of $73.6 million, significantly surpassing the lack of inflow observed on March 25th.
On the contrary, Blackrock’s Bitcoin ETF (IBIT) experienced an even more significant increase in investments, drawing in $323.8 million in new funds.
However, other Bitcoin ETFs such as Valkyrie Bitcoin ETF (BRRR), Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), and VanEck Bitcoin ETF (HODL) recorded smaller inflows of $5.1 million, $4.8 million, $4 million, and $1.9 million respectively.
WisdomTree Bitcoin ETF (BTCW) and Fidelity Investments Bitcoin ETF (FBTC) reported more modest gains, with inflows of $1.5 million each.
During this period, Bitcoin reached a high of $71,670 but dipped below the $69,000 level, eventually settling at $69,698 by the end of the day. As of now, Bitcoin is priced at $70,783 according to CoinMarketCap.
Cryptocurrency analysts have begun discussing how the focus on Bitcoin’s immediate price movements may overshadow a more significant trend.
On March 28th, crypto analyst Gumshoe shared with his 28,900 followers that the emphasis on daily price movements may be misplaced, given the substantial investments flowing into Bitcoin.
“Given the record inflows into Bitcoin ETFs, he remarked that the focus on daily price fluctuations appears misplaced.”
On March 27th, Bitwise’s Chief Investment Officer Matt Hougan pointed out that many professional investors are still restricted from purchasing Bitcoin ETFs, particularly in the UK where regulatory caution towards crypto remains prevalent.
He proposed that the landscape for Bitcoin ETF investments would undergo gradual evolution over the next few years, driven by various individual assessments.
The significant inflows into Bitcoin ETFs reflect a growing institutional interest in cryptocurrency. Cathie Wood, CEO of ARK Invest, has projected that Bitcoin’s price could reach as high as $3.8 million, driven by its expanding role in the “financial superhighway.”
Wood argues that the SEC’s cautious approach to institutional Bitcoin investments could inadvertently boost its price.
The launch of these financial products has led to a surge in demand, breaking previous US ETF investment records and reigniting interest in Bitcoin, which these funds directly procure and manage.
Industry experts support Wood’s view that the upcoming Bitcoin halving event in April will lead to a supply shock, further bolstering the ongoing demand-driven price rally.
