Bitcoin ETFs: The Rollercoaster Ride You Didn’t Sign Up For! 🎢💰

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On the fateful day of March 17, a curious spectacle unfolded in the realm of digital gold. Twelve spot Bitcoin ETFs, those whimsical creatures of finance, found themselves basking in a delightful shower of $274.6 million in net inflows. Ah, the sweet scent of money! It was a sight not seen since the early days of February, when hope still danced in the air like a drunken ballerina. Meanwhile, the Volatility Index (VIX), that fickle friend, decided to take a leisurely stroll downwards, much to the delight of the weary investors.

According to the wise sages at SoSoValue, the US-based investment products, after a two-week bloodbath that would make even the bravest gladiator weep, managed to surpass the $35.5 billion mark in cumulative net inflows. A miracle, indeed! 🎉

Leading the charge were Fidelity’s FBTC and ARK 21Shares’ ARKB, with inflows of $127.3 million and $88.5 million, respectively. It seems they were the darlings of the day, while BlackRock’s IBIT, the largest digital asset fund, joined the party with a respectable $42.3 million. Grayscale’s Mini BTC ETF and Bitwise’s BITB also made their presence known, albeit with a more modest $14.2 million and $2.3 million in inflows. The remaining seven digital asset investment funds, however, decided to play it cool, remaining neutral as the total trading volume reached a staggering $1.87 billion. Talk about a quiet day at the office!

Now, let’s not forget about our dear friend Spot Ethereum, who was busy minding its own business at $1,895. With a 24-hour volatility of 0.6% and a market cap of $228.31 billion, it seemed to be enjoying a rather uneventful existence. But alas, the ETFs in the US were not as fortunate, enduring a nine-day consecutive selloff that left them with a net outflow of $7.3 million, all thanks to Grayscale’s ETHE fund. Poor thing!

The Declining Volatility

In a twist of fate, the 12 spot BTC ETFs experienced a net outflow of $1.36 billion this month alone. The global crypto market cap, once a towering giant at $3.23 trillion, took a nosedive to $2.71 trillion over the past 30 days. What a fall from grace!

One cannot ignore the elephant in the room: President Donald Trump’s unexpected tariffs on countries like Canada, China, Mexico, India, Brazil, and Vietnam. These tariffs, intended to address “unfair trade practices,” sent shockwaves through the market, leaving many to ponder the consequences. Last month, Balaji Srinivasan, the former Coinbase CTO, warned of the impending doom that Trump’s trade tariffs could unleash upon the world. Spoiler alert: he wasn’t wrong!

Yet, as the dust begins to settle, the tariff effect seems to be fading like a bad dream. The CBOE VIX, that ever-watchful guardian of market sentiment, has been on a steady decline from its seven-month high of 27.8 on March 10 to a more manageable 20.5 at the time of this writing. The fall of Wall Street’s “fear gauge” suggests that investors are beginning to feel a glimmer of hope. If this trend continues, we might just see a resurgence of inflows into stocks and BTC ETFs. Fingers crossed! 🤞

Despite the strong inflows into BTC ETFs, Bitcoin itself remains trapped in a consolidation phase, oscillating between $82,000 and $84,000, with a trading volume of $24 billion. As of now, Bitcoin is trading at a rather precise $83,100. A number that seems to mock us all, doesn’t it?

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2025-03-18 19:09