Spot Bitcoin ETFs See Inflows Return
Institutional demand for Bitcoin appears to be returning, as spot BTC ETFs posted their second straight week of net inflows for the first time in five months. The funds pulled in a collective $568.45 million in March, reversing a recent trend of net outflows and suggesting renewed risk appetite via regulated vehicles.
The recent positive flows reverse a challenging start to the year for spot Bitcoin ETFs, which saw a five-week streak of withdrawals totaling approximately $3.8 billion. That trend was largely driven by outflows from the Grayscale Bitcoin Trust (GBTC), which has consistently shed assets since its conversion to an ETF. BlackRock's iShares Bitcoin Trust (IBIT) has been the primary beneficiary of the renewed interest, attracting $660 million in the first week of March alone. On a single day, March 4th, IBIT absorbed $306.60 million, accounting for roughly two-thirds of the total daily ETF inflows. This demand has pushed the total assets under management (AUM) for all U.S. spot Bitcoin ETFs to $87.07 billion. The turnaround is not solely a BlackRock story. The week of February 27th saw $787 million in net inflows across all funds, followed by the $568 million inflow week. This broader participation suggests a more genuine shift in institutional sentiment rather than just a rotation of capital between different ETF products. This institutional re-engagement is part of a larger trend, with projections indicating that institutional investors could allocate up to 18% of their assets under management to digital assets within the next three years. As of early 2026, 86% of institutional investors already hold or plan to hold digital assets in their portfolios.
