The US-based spot Bitcoin exchange-traded funds register six-week high gains as the CBOE Volatility Index cools down.
By Wahid Pessarlay
Updated
2 mins read
On March 17, 12 spot Bitcoin BTC $84 395 24h volatility: 1.3% Market cap: $1.68 T Vol. 24h: $30.12 B ETFs in the US recorded $274.6 million in net inflows. This level was last seen in early February. Meanwhile, the Volatility Index (VIX) registered consecutive declines over the last week.
The US-based investment products saw their cumulative net inflows surpass the $35.5 billion mark again after a two-week bloodbath, according to data from SoSoValue.
Fidelity’s FBTC and ARK 21Shares’ ARKB led the day with $127.3 million and $88.5 million in inflows. The largest digital asset fund, BlackRock’s IBIT, also saw an inflow of $42.3 million.
Grayscale’s Mini BTC ETF and Bitwise’s BITB also registered $14.2 million and $2.3 million in inflows, respectively.
The seven remaining digital asset investment funds stayed neutral as the total trading volume reached $1.87 billion.
Spot Ethereum ETH $1 613 24h volatility: 1.9% Market cap: $194.84 B Vol. 24h: $14.33 B ETFs in the US, however, continued their nine-day consecutive selloff, recording a net outflow of $7.3 million, solely coming from Grayscale’s ETHE fund, as data from SoSoValue shows.
The 12 spot BTC ETFs witnessed a net outflow of $1.36 billion this month alone. Moreover, the global crypto market cap also plunged from $3.23 trillion to $2.71 trillion over the last 30 days.
One of the main reasons behind the bearish sentiment has been the introduction of President Donald Trump’s unexpected tariffs on countries like Canada, China, Mexico, India, Brazil and Vietnam to address the “unfair trade practices”.
Last month, Balaji Srinivasan, former Coinbase CTO, warned about the negative global effects of Trump’s trade tariffs.
However, the tariff effect seems to be slowly fading away. The CBOE VIX has been consistently declining from its seven-month high of 27.8 on March 10 to 20.5 at the time of writing.
VIX is a real-time index showing the potential market volatility based on the price changes in the S&P 500 Index for the next 30 days. The fall in Wall Street’s “fear gauge” shows increasing positive sentiment among investors.
If the VIX decline continues, inflows into stocks and BTC ETFs are likely to restart.
Despite the strong inflows in BTC ETFs, Bitcoin continued its consolidation between $82,000 and $84,000 with a $24 billion trading volume.
Bitcoin is currently trading at $83,100 at the reporting time.
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Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.