In a striking market development, Bitcoin exchange-traded funds (ETFs) have recorded over $1 billion in net inflows within just three trading sessions this week. This surge occurred despite Bitcoin remaining significantly below its recent peak.
According to data from SoSoValue, US-listed spot Bitcoin ETFs accumulated a total of $1.02 billion in inflows from Tuesday to Thursday. Notably, Wednesday marked the highest single-day inflow, with $506.51 million entering the funds.
On Friday, ETF analyst Nate Geraci highlighted this trend in a post on X, noting that investors seemed to be “buying the dip” amid the ongoing market downturn. He indicated that since hitting a record high in early October, spot Bitcoin ETFs had experienced approximately $6.5 billion in outflows, which he described as modest when compared to the $55 billion total absorbed since January 2024.
Geraci remarked, “50% drawdowns are a walk in the park for long-time BTC investors,” suggesting that newer ETF investors are also maintaining a calm outlook.
The recent inflows have reversed a multi-week trend of outflows, following five consecutive weeks of net withdrawals. The last two weeks of January alone saw a combined outflow of $2.82 billion. Leading the rebound was BlackRock”s iShares Bitcoin Trust (IBIT), which alone saw $275.82 million in net inflows on Thursday.
While Fidelity”s FBTC and Ark 21Shares ARKB posted outflows, these losses were more than compensated by gains in other funds, such as Bitwise”s BITB and Grayscale”s BTC.
In a broader context, altcoin ETFs have also shown positive trends in recent days. Spot Ether (ETH) ETFs added approximately $173 million during the same three-day period, while Solana funds recorded around $35 million in inflows. Meanwhile, XRP ETFs saw modest inflows of about $7 million.
Analysts are increasingly viewing ETF flows as a gauge of market sentiment. As discussions arise regarding the potential easing of recent selling pressure, some analysts suggest that Bitcoin“s roughly 50% drawdown may be nearing its end. CoinEx chief analyst Jeff Ko previously indicated that the improvements in spot ETF inflows could be a sign that aggressive selling pressure is diminishing. However, he cautioned against expecting a sudden V-shaped recovery following such a steep decline.
Bitrue research lead Andri Fauzan Adziima echoed similar sentiments, pointing to oversold technical indicators and suggesting that sustained ETF inflows might catalyze market stabilization.
