Bitcoin: ETFs return to inflows after a red week

After five days of massive outflows, Bitcoin ETFs are (finally!) returning to positive flows. A wind of optimism is blowing through the crypto market, but technical and institutional indicators tell a different story. We'll tell you more in the paragraphs that follow.

Bitcoin ETFs See $75.47 Million in Net Inflows

BlackRock's Bitcoin ETF finds itself in the lead with 60.61 million inflows alone. This is a brutal reversal since the IBIT suffered a record outflow of $523 million the day before.

Grayscale's crypto ETF also attracts 53.84 million according to data. This is not the case for Fidelity and VanEck (HODL), which continue to lose ground. They show $21.35 million and $17.63 million in withdrawals, respectively.

This rebound in Bitcoin ETFs coincides with a slight recovery in BTC. This crypto asset is now trading around $92,200, after a decline below $90,000. And while it wavers, other assets capture the attention. We refer in particular to the Solana ETFs which record $55.6 million in positive flows. As for XRP, it attracts $15.8 million. Much less known, Hedera (HBAR) garnered $577,000.

Behind the numbers, a defensive institutional strategy

Behind this apparent rise in Bitcoin ETFsanalysts identify a change in posture. According to them, institutional investors are not deserting. They reposition their exhibition.

The proof: the put options on IBIT reach peaks. Which reveals a logic of hedging rather than an assumed bullish bet.

American monetary policy also continues to blur the lines. Hopes for rapid easing are dashing. In fact, the probability of a rate cut by the Fed in December went from 48.9% to 33.8%. A signal of caution which fuels the feeling of strategic withdrawal, rather than a return to risk appetite.

In any case, the recovery in flows on Bitcoin ETFs could announce a recovery or mask a simple technical adjustment. As long as the macroeconomic context remains unclear, caution remains in order.