The ARK 21Shares Bitcoin ETF experienced a surge in daily inflows, reaching $201.8 million on March 27. This amount was nearly five times higher than its average daily inflow, even as Bitcoin failed to hit the $72,000 mark. Data released by Farside Investors indicated that the ETF's inflow was four times greater than the daily average of $43.9 million since its launch on January 11.

Overview of ETF Activity

On the day before, ARK Invest received an inflow of $73.6 million, nearly tripling its usual amount, while no funds entered on March 25. Other ETFs such as Valkyrie Bitcoin ETF (BRRR), Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), and VanEck Bitcoin ETF (HODL) also saw inflows of $5.1 million, $4.8 million, $4 million, and $1.9 million, respectively. WisdomTree Bitcoin ETF (BTCW) and Fidelity Investments Bitcoin ETF (FBTC) each registered an inflow of $1.5 million. Bitcoin peaked at $71,670 but closed the day at $69,698 with current trading figures at $69,756 according to CoinMarketCap.

Expert Analysis of ETF Flows

Several cryptocurrency analysts have signaled that investors are overly focused on the short-term price movement of Bitcoin rather than its broader prospects. Gumshoe, a prominent researcher, pointed out that investors tend to fixate on daily price fluctuations rather than analyzing actual fund movements into Bitcoin. Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, highlighted that many professional investors, especially in the UK where regulatory restrictions are more stringent, are unable to invest in Bitcoin ETFs at present. He predicted that this scenario might shift, with over 100 individual case assessments expected in the next two years. Additionally, Bitcoin Munger, a well-known crypto commentator, estimated that a $13 billion capital entry could potentially drive the price up by $50,000 to $70,000. Investment products like spot Bitcoin ETF funds have already seen a total inflow of $13.2 billion since the start of the year.