Bitcoin (BTC) News Today: BTC-spot ETF Market Trends and Investor Sentiment

By:

Published: Mar 27, 2024, 03:45 UTC

Key Points:

Bitcoin (BTC) gained 0.44% on Tuesday (March 26), ending the session at $70,063.
The BTC-spot ETF market ended a five-day streak of total net outflows, supporting a BTC return to the $70,000 handle.
On Wednesday, BTC-spot ETF market flow data for Tuesday (March 26) needs investor consideration.

BTC-Spot ETF Market Sees Net Inflows after Five Days of Net Outflows

On Tuesday, BTC gained 0.44%. Following a 3.77% rally on Monday, BTC ended the session at $70,063.

BTC-spot ETF market flow data for Monday (March 25) contributed to the gains. However, iShares Bitcoin Trust (IBIT) saw modest net inflows relative to historic levels, capping the BTC gains.

On March 25, the BTC-spot ETF market saw net inflows of $15.7 million. According to BitMEX Research,

Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $261.8 million, leading the Nine. FBTC net inflows were the most marked since March 13.
iShares Bitcoin Trust (IBIT) saw net inflows of $35.5 million, the second lowest since launching on January 11, 2024. Significantly, IBIT saw net inflows below $100 million for the fourth time in five sessions.
Grayscale Bitcoin Trust (GBTC) saw net outflows of $350.1 million, up from $169.9 million (March 22).

On Tuesday, preliminary numbers from Farside Investors signal a second successive day of net inflows. FBTC saw net inflows of $279.1 million, offsetting GBTC net outflows of $212.3 million. A rebound in IBIT net inflows could signal renewed investor appetite and support a BTC run at the ATH of $73,808.

Moreover, competition within the BTC-spot ETF market will increase. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared news of the latest launch, saying,

“DEFI finally and officially makes it to the starting gate. Spot Bitcoin ETF #11. The getting is so good right now I could see this one getting some bites (if the fee is competitive) despite being so late.”

According to the Hashdex announcement, Tidal Investments LLC and Hashdex Asset Management Ltd will rename the Hashdex Bitcoin Futures ETF to Hashdex Bitcoin ETF, effective March 27, 2024.

CFTC Raises the Hope for an ETH-Spot ETF Market

News of the Commodity Futures Trading Commission charging KuCoin with operating an illegal digital asset derivatives exchange garnered investor interest. The crypto market considered the CFTC move as reason to classify ETH as a commodity. However, the SEC must also consider ETH a commodity to fuel bets on an ETH-spot ETF market.

After the Ethereum Merge, SEC Chair Gensler labeled ETH as a security because of the change in protocol to Proof-of-Stake (PoS). The SEC classification of ETH as a security creates an uncertain future for an ETH-spot ETF market.

On Tuesday, Eric Balchunas stuck to his previous prediction of an ETH-spot ETF approval, saying,

“Re Eth ETF approval, we are holding the line at 25% odds altho tbh it is a very pessimistic 25%. The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain’t looking good.”

In January, SEC Chair Gary Gensler warned against seeing the SEC approval of BTC-spot ETFs as a precursor to crypto-spot ETFs.

Nonetheless, hopes of an ETH-spot ETF market linger, exposing ETH to spot ETF market-related news and chatter.

Technical Analysis

Bitcoin Analysis

BTC sat well above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC break above the Tuesday (March 26) high of $71,570 would support a run at the March 14 ATH of $73,808. A breakout from the ATH could give the bulls a run at the $75,000 handle.

On Wednesday, BTC-spot ETF market flow data remains the focal point.

Conversely, a fall through the $69,000 support level could give the bears a run at the $64,000 support level.

The 14-Daily RSI reading, 60.06, indicates a BTC return to the ATH of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.

BTCUSD 270324 Daily Chart

Ethereum Analysis

ETH hovered above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH breakout from the $3,750 handle would support a move to the $3,835 resistance level.

ETH-spot ETF-related news warrants investor attention.

Conversely, an ETH fall through the $3,480 support level could give the bears a run at the 50-day EMA and the $3,244 support level.

The 14-period Daily RSI at 54.45 indicates an ETH return to the $3,835 resistance level before entering overbought territory.

ETH Daily Chart sends bullish price signals.

ETHUSD 270324 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.