Bitcoin exchange-traded funds (ETFs) experienced a significant rebound on Thursday, recording net inflows of $239.9 million. This marks a promising turnaround after a challenging six-day stretch during which the funds saw a staggering outflow of over $2 billion. The inflow was primarily driven by BlackRock’s IBIT, which led the way with $112.4 million, followed by Fidelity’s FBTC at $61.6 million and Ark 21Shares’ ARKB with $60.4 million, according to data from Farside Investors.
The recovery is especially noteworthy given the harsh week preceding Thursday, where last Friday alone saw a loss of $470.7 million in outflows. This trend continued throughout the week, culminating in a remarkable record of $566.4 million in outflows on Tuesday. During this period, IBIT failed to attract any inflows while FBTC suffered a loss of $356.6 million.
In a similar context, Ethereum ETFs mirrored Bitcoin’s trajectory, contributing $12.5 million in net inflows on the same day after a week dominated by exits. Currently, Ethereum is trading at approximately $2,235, down 4.5% over the past 24 hours, as indicated by CoinGecko data.
Industry analysts are interpreting this shift as a positive signal of renewed accumulation among investors. Yaroslav Patsira, fractional director at CEX.IO, remarked that this change in flow suggests an easing of sell-side pressure from long-term holders. Particularly notable is the activity involving whale wallets—those holding over 1,000 BTC—which have recently added more than 10,000 BTC to their holdings.
Despite a recent decline in Bitcoin’s value—down 20% from last month’s peak of $126,000 and trading around $100,257 with a 2.8% drop in the last 24 hours—the influx of capital indicates a renewed institutional interest. A report from QCP Capital pointed out that the previous consecutive sessions of net outflows had temporarily transformed what could have been a strong market tailwind into a near-term headwind.
The prevailing sentiment among analysts suggests that Bitcoin may still have potential for growth. As Nic Puckrin, co-founder of The Coin Bureau, noted, the selling pressure appears to be diminishing. He observed that as sellers exit, the market is becoming a more appealing buying opportunity. Furthermore, the expectation that the ongoing bull market has not reached its conclusion seems to be gaining traction.
The recent dip below the $100,000 threshold is viewed as critical, with QCP Capital suggesting that this psychological line may quickly sway market sentiment if ETF flows stabilize. However, Ray Youssef, co-founder and CEO of NoOnes, cautioned that while the positive inflows are a hopeful sign, it may be premature to declare a definitive trend reversal, given the modest volumes and negative weekly averages.
The overall mood in the market appears cautiously optimistic as investors keep a close eye on evolving dynamics, navigating both challenges and opportunities amid complex market conditions.
