In tune with the flow: March BTC ETP Recap

March was a massive month for the exchange-traded BTC funds, with net inflows amounting to 12,272 BTC, pushing the global BTC exposure of BTC ETPs above 200,000 BTC.

As bitcoin evolves from an asset traded, held, and used solemnly by cyber hornets to an asset held by cyber hornets, nation-states, and Wall Street, it becomes vital to decipher the BTC trends from the sacred realm of tradfi to navigate the market.

The institutional adoption and "productification" of BTC will, with time, lead on-chain analysis to become less and less relevant. I'll get back to this another time, but in sum: you should be careful by accepting easy-going bullish or bearish narratives related to hodler behavior or exchange balances as bitcoin becomes more frequently traded in markets beyond the limits of on-chain analysis. This series sheds light on one such sector: The BTC ETP sector – allowing you to stay in tune with the current flows.

March: Key takeaways

  • March saw net inflows amounting to 12,272 BTC, leading March to become the strongest month in terms of inflows in ETPs since November last year.

  • The AUM of the BTC ETPs surpassed 200,000 BTC in March and reached a new all-time high. Since June 2020, Bitcoin ETPs AUM has increased by 136,641 BTC, analogous to 151 days of mining rewards.

  • All ETP regions saw positive net inflows in March, the Canadian ETFs saw the sharpest growth in March, increasing their AUM by 6,066 BTC.

  • ProShares saw positive inflows during the rolling period from March 21st to March 25th. All previous rolling periods have been accompanied by sluggish flows, possibly caused by the associated rolling costs. The positive flows during the rolling week in March may be caused by the BTC strength on the backdrop of LFG’s Bitcoin Reserve Strategy.

  • Europe ended its three-month streak of net outflows and saw substantial inflows in March.

  • Overall, March was a very strong month for BTC ETPs suggesting a growing demand for BTC exposure in legacy markets.

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