- U.S. spot Bitcoin ETFs recorded a $93.2 million outflow on March 28, ending a 10-day streak of consistent inflows.
- Fidelity’s FBTC was solely responsible for the outflow, while BlackRock’s IBIT and other ETFs remained flat.
- Analysts attribute the move to profit-taking and rebalancing, with institutional sentiment largely unchanged.
BlackRock’s IBIT Holds Steady Following Isolated Outflow Event
U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their first net outflow in 10 trading sessions on March 28, as $93.2 million left the market, according to data from Farside Investors.
The outflows were all from Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw a $93.2 million net redemption. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) and eight other spot ETFs registered zero net flows, a sign of a drastic divergence in institutional behavior.
The outflows followed a 10-day run of net inflows that had added more than $1 billion to spot Bitcoin ETFs since mid-March. Market analysts point to profit-taking and quarter-end portfolio rebalancing as likely drivers behind the outflow, rather than widespread loss of conviction.
Bitcoin traded at approximately $82,000 on the day of the outflows but quickly rebounded toward $84,000, a sign of continued demand and low market disruption.
The price movement suggests a strong absorption of the selling pressure, with analysts explaining that the move was isolated to Fidelity’s ETF and did not reflect a global momentum.
BlackRock’s IBIT Holds Firm as Fidelity Triggers Isolated ETF Pullback
BlackRock’s IBIT, the largest spot Bitcoin ETF by assets under management, was flat, with no redemptions during the sell-off, showcasing its position as the institutional “buy-and-hold” vehicle.
The fund has consistently drawn inflows even during general market volatility, a show of its reliability and role as a longer-term allocation vehicle for institutions. IBIT’s investor base has shown resilience in prior market pullbacks, often increasing exposure while other funds saw outflows.
In contrast, FBTC’s immediate outflow suggests exposure to more tactical or shorter-term-oriented investors, unlike IBIT’s strategic holders.
Analysts Point to Profit-Taking, Ethereum Rotation Amid Market Stability
Despite the ETF sell-off, Bitcoin had support at $82,000 and immediately rallied back to ~$84,000, showing strength against ETF selling. The analysts note the action was in isolation—as peer products including Ark Invest’s ARKB, Bitwise’s BITB, and Invesco’s BTCO all posted minimal or no activity. The market’s non-reaction suggests no institutional panic.
Meanwhile, institutional interest appears to be expanding to other digital assets. Fidelity’s Ethereum ETF saw a $295.5 million one-day inflow around the same period, a sign of asset rotation instead of withdrawal from crypto exposure.
With macroeconomic conditions remaining favorable and Bitcoin trading near all-time highs, analysts expect spot ETF inflows to resume in early Q2. IBIT’s continued stability is viewed by some as a key reason for institutional confidence in Bitcoin’s long-term role in portfolios.