ARK 21Shares, a Bitcoin exchange-traded fund (ETF), experienced a significant increase in inflows, reaching a record high of $201.8 million on Wednesday. This surge in inflows was nearly five times the average daily amount, as Bitcoin came close to reaching $72,000. Preliminary data from Farside Investors showed that the daily inflow for the ARK 21Shares Bitcoin ETF on March 27 was four times higher than its daily average of $43.9 million since its launch on January 11. This marked a significant increase from the previous day’s inflows of $73.6 million, with no recorded inflows on March 25.
Other Bitcoin ETFs also saw inflows, albeit in smaller amounts. The Valkyrie Bitcoin ETF (BRRR) had $5.1 million in inflows, the Invesco Galaxy Bitcoin ETF (BTCO) saw $4.8 million, the Franklin Bitcoin ETF (EZBC) had $4 million, and the VanEck Bitcoin ETF (HODL) noted $1.9 million. The WisdomTree Bitcoin ETF (BTCW) and Fidelity Investments Bitcoin ETF (FBTC) reported single-digit inflows of $1.5 million each. However, data from BlackRock is still pending.
These inflows coincided with Bitcoin’s price reaching $71,670 before dropping below the $69,000 support level and closing the day at $69,698. At the time of writing, Bitcoin’s current price stands at $69,464, according to CoinMarketCap data.
Some crypto commentators have started to argue that investors are too focused on Bitcoin’s short-term price fluctuations, neglecting the bigger picture. A crypto researcher known as Gumshoe highlighted this perspective, stating that investors are overly concerned with daily price closures instead of considering the actual influx of funds into Bitcoin.
Matt Hougan, the chief investment officer of Bitwise, also pointed out that the majority of professional investors are still unable to buy Bitcoin ETFs, particularly in the United Kingdom where the Financial Conduct Authority (FCA) remains cautious about cryptocurrencies. However, he believes that this will change over the next two years as more due diligence processes are conducted.
Bitcoin Munger, a popular crypto commentator, expressed his belief that the next $13 billion of inflows could significantly impact the price, potentially adding $50,000 to $70,000 or more. Earlier this year, it was reported that a total of $13.2 billion in new capital had entered investment products such as spot Bitcoin ETFs.
In other news, Bitcoin Man, an influential figure in the crypto industry, predicts that China will contribute to a bullish run for Bitcoin, with the price potentially reaching $1 million by 2028. This prediction was made in the Bitcoin Man’s induction into the X Hall of Flame.