Today, Friday, March 29, the stock market is closed in the United States, so yesterday, Thursday, was the last day of the trading week and also the trading month. Over these 4 days, the Spot Bitcoin (BTC) ETF had positive capital inflows, thus breaking the 5-day negative streak that was beginning to cause concern.
According to the data collected by the portal SoSo Price, Net capital inflows into Bitcoin ETFs during March were $183 million, Since January 10 – when the ETF began operating – accumulated net inflows have already reached $12 billion.
In the following image you can see what has been described so far. Each green candle (vertical bar) is a day with positive capital inflows and each red candle is a day with negative capital inflows:
Bearing in mind that Bitcoin ETFs are primarily (though not exclusively) used by institutional, corporate investors and money managers, These funds can be considered a “thermometer” that measures the degree of confidence these players have about Bitcoin.
And, by “about Bitcoin” we not only refer to everything that pertains to the digital currency created by Satoshi Nakamoto, but also to the entire cryptocurrency industry and ecosystem.
For example, issues of a regulatory or judicial nature may positively or negatively impact market perception of the industry. Two important events related to these sectors occurred this week, namely the US Department of Justice lawsuit against KuCoin exchange for allegedly facilitating money laundering; And Sam Bankman-Fried, founder of cryptocurrency exchange, FTX, sentenced to 25 years in prison for a million dollar scam,
For those who want a regulated Bitcoin and cryptocurrency ecosystem (such as large institutional investors), this type of news is obviously welcome.
With all this, Bitcoin price closed this week on the rise, At the time of writing, BTC is trading above $70,000 and its growth over the past 7 days was approximately 10%, as can be seen in the following graph:
But, it’s worth clarifying that not all judicial news is good for the Bitcoin industry. Yesterday it became known that a court reject Coinbase’s request to dismiss the lawsuit filed against it by the Securities and Exchange Commission (SEC) for the alleged sale of unregistered securities.
bearing this in mind Coinbase is the main custodian of Bitcoin that supports ETFs, The fact that there is demand for it has created some fear among investors. Perhaps this is what has slowed the growth of Bitcoin, which has not yet returned to its all-time high of $73,700.
