Bitcoin exchange-traded funds (ETFs) have experienced a significant resurgence in inflows, reflecting renewed interest from institutional investors. On Tuesday, U.S. spot Bitcoin ETFs recorded $753.7 million in net inflows, marking the highest daily total since October 7. This uptick in demand is interpreted as a strong indicator of a return to market activity from institutional buyers following a period of low engagement.
The surge in ETF inflows coincided with a rise in both Bitcoin and Ethereum prices, suggesting that institutional capital is once again flowing into these leading digital assets. Notably, major fund issuers were at the forefront of this activity, with Fidelity”s FBTC fund attracting $351.36 million. Other key contributors included Bitwise, which drew in $159.42 million through its BITB fund, and BlackRock, which added $126.27 million via its IBIT fund.
Additional inflows were reported for ARKB, with $84.88 million, and smaller amounts for Grayscale”s Bitcoin trust at $18.80 million, VanEck”s HODL with $10 million, and WisdomTree”s BTCW at $2.99 million. The concentration of inflows among a few major funds suggests a targeted investment strategy rather than a broad-based market movement.
As of the latest updates, Bitcoin is trading around $95,084, reflecting an increase of over 3.25% within a day. The cryptocurrency has shown resilience, posting 16 out of 30 trading days in the green, indicating sustained upward momentum alongside increasing ETF interest.
The trend of renewed ETF inflows has also positively impacted Ethereum investment products, which collectively attracted $130 million in net inflows across five funds in a single day. BlackRock”s ETHA led the charge with $53.31 million, followed by Grayscale”s Ethereum fund with $35.42 million, while Bitwise”s ETHW gained $22.96 million, and Fidelity”s FETH added $14.38 million.
Market analysts, including Nick Ruck from LVRG Research, suggest that these inflows signify a strategic reallocation of capital by investors who had previously taken a cautious stance. Ruck describes the current market climate as a reset following the previous quarter”s pullback, indicating a recovery in risk appetite among institutional investors.
Several factors contribute to this renewed institutional interest. Strong demand for ETFs has effectively absorbed available Bitcoin supply beyond daily mining output. Additionally, improving inflation data has bolstered expectations for potential interest rate cuts, further enhancing market sentiment.
Vincent Liu, chief investment officer at Kronos Research, attributes the current market rally to sustained ETF inflows that are absorbing supply beyond what miners can produce. He emphasizes that the momentum is driven primarily by spot demand, rather than leverage, which could lead to a more stable market environment moving forward.
