Institutional Money Creeps Back Into Crypto ETFs After a Brutal Month

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Institutional Money Creeps Back Into Crypto ETFs After a Brutal Month

After a month that looked like a disaster for digital-asset funds, capital has finally begun creeping back into the spot ETF market.

Key Takeaways:

  • Bitcoin and Ether ETFs ended their streak of heavy outflows with fresh weekly inflows.
  • Ether funds saw the strongest rebound, while Bitcoin inflows were spread across multiple issuers.
  • Analysts say improving ETF flows could signal a short-term market bottom for BTC.

Bitcoin and Ethereum products in the U.S. ended the week with fresh inflows, hinting that institutional money may be returning after four consecutive weeks of heavy selling.

The shift marks a notable change from the brutal November period that saw billions exit the sector and forced asset managers to defend their positions. Throughout that stretch, spot Bitcoin ETFs alone lost more than $4 billion in capital, with two separate weeks each recording more than $1.2 billion in outflows.

Bitcoin ETFs Stabilize After Redemptions Wave

This week, sentiment improved just enough to flip the trajectory. Around $70 million flowed into spot Bitcoin ETFs across the week, reversing part of the damage. Friday delivered the strongest result, with roughly $71 million in net inflows and lifiting lifetime net inflows close to $57.7 billion.

Asset levels across the Bitcoin ETF landscape have now rebounded to about $119.4 billion, representing roughly 6.5% of Bitcoin’s total market value.

Notably, the recovery wasn’t driven by a single market leader. BlackRock’s IBIT — normally the ETF soaking up the majority of inflows — actually saw more than $113 million in outflows on the day. Instead, rival issuers picked up the slack, led by ARK 21Shares’ ARKB and Fidelity’s FBTC, which together absorbed strong inflows and pulled the group back into positive territory.

Ether ETFs Stage a Stronger Rebound

While Bitcoin ETF flows were modest, the turnaround in spot Ether ETFs was far more dramatic. U.S. Ether funds pulled in about $312 million over the week, snapping a three-week losing streak that had previously erased nearly $1.74 billion in capital.

Friday added another $76.6 million, pushing lifetime net inflows to almost $12.94 billion. Total assets across Ether ETFs now sit around $19.15 billion, equal to about 5.2% of Ethereum’s market capitalization.

Analysts Spot a Possible Sentiment Shift

The improved ETF flows coincide with cautious optimism in the market. Analyst Mister Crypto has suggested that Bitcoin may be creating a short-term price floor as whales reopen long positions and RSI approaches oversold territory — a combination that historically precedes upside moves. A relief rally toward $100,000–$110,000 is now seen as possible if momentum increases.

Bitwise’s head of research for Europe, André Dragosch, echoed the view, arguing that Bitcoin’s recent price action does not reflect improving macro expectations — which could leave room for significant upside.


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Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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