Spot Bitcoin ETFs Rebound After 5 Weeks Of Outflows

U.S. spot Bitcoin ETFs recorded a third consecutive day of net inflows, marking their longest positive streak since February.

According to SoSoValue, total daily net inflows reached $209 million on Tuesday, continuing the recovery trend.

Meanwhile, spot ether ETFs saw record net outflows for the tenth straight day, highlighting contrasting market movements.

Bitcoin ETFs Extend Positive Streak

U.S. spot Bitcoin ETFs continued to attract inflows after experiencing five weeks of net outflows.

The IBIT from BlackRock was Tuesday’s leading inflow recipient, attracting $218.12 million, while Ark Invest & 21Shares’ ETF lost $9 million.

The remaining ten bitcoin ETFs reported no flows for the day. The total of $274.6 million received by Bitcoin on Monday represented the highest daily net uptake since February 4.

Positive flows during three consecutive days have resulted in a $483.7 million total weekly intake.

A change in investor sentiment toward these funds brought about this resurgence after they lost approximately $5.4 billion over five weeks.

BTC Markets Crypto Analyst Rachael Lucas explained that institutional investors perform quarter-end portfolio adjustments while bitcoin maintains stable prices as the reason for this change.

She argued institutions modified their financial portfolios because of market developments.

The rising level of ETF trade shows investors have rekindled their interest in the market.

Tuesday’s total trade volume across 12 spot bitcoin ETFs reached $2.12 billion, and these funds have received a total net inflow of $35.79 billion.

Research indicates that institutional investors have displayed positive signs of returning to invest in the market since they started departing.

Ether ETFs Face Extended Outflows

While Bitcoin ETFs saw inflows, spot ether ETFs faced a tenth consecutive day of net outflows.

BlackRock’s ETHA experienced the biggest withdrawal, $40.17 million, while Grayscale’s Mini Ethereum Trust lost $9.33 million.

The FETH network operated by Fidelity experienced a total of $3.32 million worth of outgoing money.

The duration of net losses reflects the longest recorded period since spot ether ETFs entered the market in July 2023.

Capital withdrawal from ether-related funds continues relentlessly since investors show decreasing interest in these products.

A combination of regulatory and market system uncertainty possibly produced this long period of negative fund movement.

Over the past weeks the entire crypto market experienced substantial capital movement away from its assets.

The combination of withdrawals from crypto assets surpassed $800 million during the previous week indicating institutional investors chose caution.

Market-wide economic instability along with investor withdrawals make up primary factors that caused capital flows to diminish.

Institutional Capital and Market Dynamics

Bitcoin ETFs had previously experienced four straight weeks of net outflows, amounting to more than $4.5 billion.

According to expert analysts, hedge funds and institutional investors lead the way in ETF flow compared to retail traders.

The strategic moves by hedge funds to move their capital in and out serve as a mechanism to affect price changes according to certain analysts.

Crypto entrepreneur Kyle Chassé observed that customers who buy ETFs participate in arbitrage activities instead of making long-term investments according to him.

The ETF experiences high volatility caused by short-term trading even though Bitcoin has genuine investors who do not engage in speculative trading.

The latest wealth transfers do not necessarily represent new investments because they could represent financial resource reorganization among institutions.

Most institutional fund managers shift their money according to how markets move within short time periods.

New investors who maintain investment positions longer than traditional market cycles have yet to enter the market so volatility will continue over time.

During the past 24 hours, Bitcoin’s price surge was 0.54%, raising it to $83,560. Ether’s market value increased by 1.91 percent, reaching $1,941.

In current trading situations, the market movement inspires analysis about whether a prolonged recovery is starting or if short-term investment behaviors dominate market patterns.