Bitcoin ETFs extend inflow streak as BTC price nears $93K

• Bitcoin ETFs log five days of inflows as BTC climbs back above $93K.
• Analysts say ETF outflows overstated as broader forces drove the sellof.
• Vanguard’s crypto ETF reversal boosts institutional demand and sentiment.

Bitcoin exchange-traded funds continued to recover this week after suffering $3.48 billion in cumulative outflows during November, their second-worst month on record.

The products notched $58 million in net positive inflows on Tuesday, marking a fifth consecutive day of additions, according to data from Farside Investors.

The modest turnaround comes as Bitcoin trades back above the $89,600 flow-weighted cost basis for ETF investors, meaning the average holder is no longer sitting on unrealised losses.

Total crypto market sentiment has also improved following a period of heavy selling that pushed Bitcoin as low as the mid-$80,000s earlier this week. Other US crypto ETFs showed weaker performance. Spot Ether ETFs recorded $9.9 million in outflows on Tuesday, while Solana funds saw $13.5 million in net redemptions, Farside data showed. At press time, the Bitcoin price on OKX was around $92,622.

Outflows are not the main driver of Bitcoin’s decline

Market anxiety around large-scale sales from spot Bitcoin ETF holders appears to have overstated their direct impact on BTC’s downturn.

Bloomberg analyst Eric Balchunas pushed back on that narrative, questioning the simplistic linkage often made between ETF outflows and price weakness.

“I just read that Citi analysts say that for every $1 billion pulled from Bitcoin ETFs, it equals roughly a 3.4% drop in Bitcoin’s price. Ok, so then by that logic, since the ETFs have taken in +$22.5b of inflows YTD BTC should be up 77% this year,” Balchunas wrote on X.

His remarks highlight the role of broader market forces,  including leverage unwinds, macro uncertainty, and digital-asset treasury pressure,  behind the recent selloff, which erased more than $1 trillion in crypto market value since early October.

Bitcoin rises to its highest level since mid-November

Bitcoin extended its recovery on Wednesday, climbing as much as 2.6% to approximately $93,965 — its highest intraday level since November 17.  Ether and other major tokens also traded higher as the broader market attempted to establish a firmer footing after weeks of turbulence.

At the time of writing, the world’s largest cryptocurrency by market capitalisation gave up some of those gains to trade around $93,000.

The bounce was attributed partly to comments from US Securities and Exchange Commission Chair Paul Atkins, who reiterated that the agency plans to introduce a new regulatory framework, including a proposed “innovation exemption,” aimed at giving digital-asset firms more flexibility around issuance, custody and trading.

The remarks were interpreted as a step toward greater regulatory certainty for the sector, which has faced a patchwork of enforcement-driven oversight in recent years.

Vanguard reversal adds fuel to institutional demand

Institutional adoption received another lift after Vanguard, the world’s second-largest asset manager, reversed its long-standing policy and announced that it would allow clients to trade cryptocurrency-focused ETFs and mutual funds on its platform.

The change, effective this week, expands access to regulated crypto exposure for millions of US investors.

The move coincided with heightened expectations that the Federal Reserve will cut interest rates next week, strengthening Bitcoin’s appeal at a time when the dollar has softened, and risk appetite is improving.

Despite the rebound, the market is still showing signs of volatility.

The cryptocurrency market has remained under pressure since late October. However, the streak of inflows could suggest that Bitcoin may manage to end the year on a positive note.