Bitcoin ETFs Show Signs Of Life As Institutional Flows Improve

Analysts say the slowing pace of redemptions could be an early inflection point in institutional demand. Some also argue that long-term Bitcoin holders are largely committed, suggesting that the recent selling reflects profit-taking rather than a loss of conviction. Bitcoin ETF Inflows Pick Up US spot Bitcoin exchange-traded funds (ETFs) showed early signs of stabilization after weeks of sustained selling, as inflows picked up at the end of last week and into Monday. The ETFs attracted $371 million in net inflows on Friday, followed by another $145 million on Monday. This happened as Bitcoin hovered close to the $70,000 level. Bitcoin ETF flows (Source: Farside Investors) While these gains have not yet offset last week’s outflows or the roughly $1.9 billion in redemptions that were recorded year-to-date, analysts say the slowing pace of losses could signal a potential turning point for institutional crypto investment products. According to CoinShares , total outflows across crypto funds slowed sharply to $187 million despite continued price pressure. This pattern has historically preceded market inflection points. CoinShares head of research James Butterfill said the deceleration in flows suggests that selling pressure may be easing, even though the broader market sentiment is still a bit cautious. Analysts at Bernstein eleven characterized the recent pullback as the “weakest bear case” in Bitcoin’s history due to the absence of major industry failures that typically accompany deeper downturns. Concerns that Bitcoin’s growing institutionalization through ETFs could alienate early adopters have also been overstated, according to Bitwise. Chief investment officer Matt Hougan said long-time Bitcoin holders have largely stayed invested, even as ETFs experienced heavy redemptions during the latest sell-off. While some early investors have taken partial profits after outsized gains, Hougan pointed out that most continue to hold their positions and are now being joined by new institutional buyers. In line with the modest rebound in Bitcoin ETFs, spot altcoin ETFs also saw inflows on Monday, with Ethereum and XRP products attracting $57 million and $6.3 million respectively.