The U.S. spot Bitcoin ETF market finally got a much-needed sigh of relief on Thursday, posting a combined $240 million in net inflows. This positive turn brings a decisive end to a painful six-day exodus that saw nervous investors pull over $2.05 billion from the popular funds. The move is a significant, if tentative, sign that buyer appetite is returning, even as the price of Bitcoin itself remains shaky and struggles to hold the critical $100,000 psychological level.
A Brutal Week Comes to an End
For nearly a week, the dominant story in the crypto world was the steady bleed from its most popular institutional products. Investors, rattled by a combination of macroeconomic uncertainty, a hawkish-sounding Federal Reserve, and worries over a potential U.S. government shutdown, had been running for the exits. This “risk-off” sentiment fueled six consecutive days of outflows, draining a staggering $2.05 billion from the spot Bitcoin ETFs and pushing the “Crypto Fear and Greed Index” into “extreme fear” territory. Thursday’s $240 million reversal isn’t just a number; it’s a potential break in the bearish fever that had gripped the market.The ‘Usual Suspects’ Lead the Charge
When the tide turned, it was the market’s heavyweights that led the way. According to data from SoSoValue, BlackRock’s IBIT, the largest fund in the category, single-handedly attracted $112.4 million in new cash. Fidelity’s FBTC was not far behind, pulling in $61.6 million, while the Ark & 21Shares’ ARKB fund secured $60.4 million. Bitwise’s BITB also attracted a respectable $5.5 million in inflows. This distribution demonstrates that institutional trust is primarily focused towards the largest and longest standing issuers in the market.
Trading Volume Rises
Just as important as the inflow values is trading volume. Day of activity for all spot Bitcoin ETFs came in at $4.77 billion, up from the previous day’s $4.07 billion. A larger volume on a positive inflow day often indicates stronger conviction as it doesn’t represent a passive drift, but an active choice to begin buying again.Price and Flow: A Market Disconnect?
This welcome news from the fund world has not, however, translated into an immediate price recovery for Bitcoin itself. The world’s largest cryptocurrency was trading down about 1.3% over the 24-hour period, hovering around $101,919. This continues a difficult trend for the asset, which remains down roughly 7% over the past week. This disconnect—where money is flowing into the ETFs but the price of the underlying asset is still lagging—highlights the current battle between buyers and sellers as the market decides whether the $100,000 level will act as a floor or a ceiling.
Ethereum ETFs Join the Rebound
The good news wasn’t just limited to Bitcoin. The recently approved spot Ethereum ETFs also snapped their own six-day outflow streak. While the figure was more modest, the category saw $12.5 million in net inflows on Thursday. This simultaneous recovery indicates a wider, albeit minor, stabilization in sentiment for major digital assets and is not limited to an event centering on Bitcoin alone.
The Long-Term Perspective
As short-term traders anxiously follow the daily price chart, several institutional investors are telling their clients to focus on the long-term view. In a recent client note, analysts at banking giant JPMorgan reaffirmed their bullish long-term view on Bitcoin. The bank’s analysts believe that Bitcoin is still substantially undervalued, on a volatility-adjusted basis, when compared to gold. Despite the recent fall below $100,000, their note signifies a target price for Bitcoin as high as $170,000 over the next six to twelve months, representing significant upside price movement from current levels.
