Strong ETF inflows signal selective institutional return to Bitcoin despite volatility and recent weeks of heavy fund outflows.
Spot Bitcoin investment vehicles flipped market fortunes on Monday after posting several days of losses. Significantly, the trend switch marked the strongest daily investment pull in several weeks. Interestingly, activity picked up despite the broader crypto market slipping over the past weekend.
Bitcoin ETFs Return to Inflows Led by Fidelity and BlackRock
After a four-day outflow run, BTC ETFs pulled in $561.9 million in net inflows on Monday. According to data from SoSoValue, Fidelity’s FBTC led the trend with $153.4 million in new capital. BlackRock’s IBIT followed closely with an investment count of $142 million. Bitwise’s BITB also added $96.5 million, keeping demand focused on the largest products.
Image Source: SoSoValue
Here is how other investment products fared on Monday:
- Grayscale’s BTC posted $67.2 million in inflows.
- Ark & 21Shares’ ARKB attracted $65.1 million in new capital.
- VanEck’s HODL recorded $24.3 million in inflows.
- Invesco’s BTCO added $10.1 million during the session.
- WisdomTree’s BTCW took in $3.3 million.
- Meanwhile, Valkyrie’s BRRR, Franklin’s EZBC, and Hashdex’s DEFI saw flat flows.
Bitcoin dropped near $75,000 on the day before rebounding above $78,000 as the trading day drew to a close. At the time of writing, the firstborn coin is hovering around $78,221 following a swing-filled intraday outing.
Vincent Liu: Bitcoin ETF Inflows Signal Renewed Institutional Conviction
Before the rebound, Bitcoin investment funds posted two straight weeks of heavy outflows. As per data, funds shed $1.49 billion last week and $1.33 billion the week prior. Risk reduction and fading arbitrage returns drove much of the earlier selling.
Several factors shaped recent allocator behavior:
- Crypto investment vehicles offered large investors a regulated and increased market exposure.
- Sharp price moves came with steady portfolio rebalancing.
- Macro positioning influenced timing rather than short-term price momentum.
- Deeper liquidity drew demand toward larger funds instead of smaller products.
Kronos Research’s CIO Vincent Liu mentioned that the inflows reflected renewed conviction among top market participants. Liu explained that large investors turned to spot ETFs to increase exposure during macro changes. He added that the move could also be intended for portfolio rebalancing or positioning ahead of key events.
HashKey’s Tim Sun Links ETF Outflows to Arbitrage Decline as Ether Funds Lag
Tim Sun, a senior researcher at HashKey Group, linked prior withdrawals to narrowing price gaps between spot ETFs and Bitcoin futures. According to him, tighter spreads lowered arbitrage returns. And this led to gradual capital exits. At the same time, lower risk appetite also pushed some investors to reduce exposure.
Sun said sentiment shifted after Bitcoin tested recent lows twice and fell below its earlier range. Much of the negative outlook now appears priced in, bringing some medium- and long-term investors back. He cautioned that the rebound points to a gradual recovery, not a confirmed rally.
Unlike its BTC counterparts, Ether ETFs recorded $2.86 million in net outflows on Monday. Even so, the figure represented an improvement on $252.87 million in withdrawals last Friday. Fidelity’s FETH stood out with $66.6 million in inflows.
Bitwise’s ETHW and VanEck’s ETHV added $5.0 million and $7.6 million. BlackRock’s ETHA, however, posted $82.1 million in outflows, weighing on the overall total.