Bitcoin ETFs record $562 million in inflows after dark week

Bitcoin exchange-traded funds finally stopped the bleeding on Monday with $562 million in fresh inflows, after four straight days of massive outflows. But will this breath of fresh air be enough to reverse the trend in a crypto market still under pressure?

Flows return to Bitcoin ETFs after $1.5 billion in withdrawals

Institutional flows timidly regained color this Monday. With $562 million in investments, Bitcoin spot ETFs finally broke a four-day black streak. A relief for a bloodless market which had seen 1.5 billion dollars leave just the previous week.

This lull comes in a particularly tense context. Bitcoin came close to $74,000 over the weekend before rebounding above $78,000 on Monday. A volatility which reflects the ambient nervousness. Especially since the balance sheet since the beginning of January remains heavily negative: $1 billion in net outflows, the result of a gap between 4.6 billion withdrawals and only 3.6 billion inflows.

Galaxy Digital analysts point to a critical level. “ BTC is currently trading 7.3% below the average ETF cost basis “, emphasizes Alex Thorn. This psychological threshold of $84,000 represents the average purchase price for investors through these funds.

Clearly, many holders are posting losses on their positions. An unprecedented situation since the summer of 2024, when bitcoin reached a floor of -9.9% below this level before starting again. This basic cost could therefore serve as “short-term support”, according to the expert.

Meanwhile, Ether ETFs continue their descent into hell. No entry to report on Monday, on the contrary: 2.9 million dollars still left these investment vehicles.

Persistent headwinds despite the rebound

The improvement remains fragile faced with the multiple pressures exerted on the market. James Butterfill of CoinShares draws a clear observation: decoupling of bitcoin from global liquidity trends, geopolitical tensions, and uncertainty over American monetary policy with the appointment of Kevin Warsh as head of the Fed. So many factors that keep institutional investors on their guard.

The numbers speak for themselves. Last week, crypto exchange-traded products lost a total of $1.7 billion. Double from the previous week.

This acceleration in exits reflects a generalized “risk-off” movement. Investors are fleeing risky assets, including gold which also fell 4% after crossing $5,300 per ounce.

BlackRock's IBIT ETF perfectly illustrates this difficulty. Long presented as the institutional vehicle par excellence, it now displays a negative average return. Investors who entered at their peak, particularly during the massive influx of capital last October, are now suffering heavy losses. The timing of entry proved catastrophic for these carriers.

Despite this $562 million rebound, the horizon remains busy for Bitcoin ETFs. Technical fundamentals suggest that support could form around the realized price of $56,000, the historic low level before bull markets. It remains to be seen whether institutional confidence will return quickly enough to transform this improvement into a real lasting recovery.