INVESTOR DEMAND RETURNS AFTER MONTHS OF WITHDRAWALS
US spot Bitcoin exchange-traded funds have recorded their second straight week of net inflows, marking the first time this has happened in about five months.
According to data from SoSoValue, spot Bitcoin ETFs brought in roughly $568 million this week. The week before that also saw strong demand, with around $787 million flowing into the funds. The back-to-back gains suggest that institutional investors may be regaining confidence after a difficult stretch for the crypto market.
Earlier coverage: Crypto ETP outflows deepen over holidays as investors stay selective into year-end
The rebound comes after a period of heavy withdrawals. Over five weeks earlier this year, spot Bitcoin ETFs saw about $3.8 billion leave the funds. The worst week occurred near the end of January, when investors pulled roughly $1.49 billion.
Daily activity during the latest week was mixed. ETFs recorded large inflows early in the week, including about $458 million on Monday, $225 million on Tuesday and another $461 million on Wednesday. However, sentiment weakened later in the week, with outflows of roughly $227 million on Thursday and $348 million on Friday.
Bitcoin ETFs see inflows for second consecutive week. Source: SoSoValue
ETHEREUM ETFS ALSO RETURN TO POSITIVE FLOWS
Spot Ether ETFs also posted their second consecutive week of inflows. These funds attracted about $23.5 million during the latest week after bringing in roughly $80 million the week before.
This is the first time Ether ETFs have recorded two positive weeks in a row since early October last year.
Like Bitcoin funds, Ether ETFs had also been dealing with consistent withdrawals. Over five weeks earlier this year, investors pulled more than $1.38 billion from the products. The biggest weekly withdrawal occurred in late January, when redemptions reached around $611 million.
Daily flows for Ether funds were uneven as well. The week started with $38 million in inflows on Monday, followed by small outflows on Tuesday. Strong inflows returned on Wednesday with about $169 million before momentum slowed again toward the end of the week.
Spot Bitcoin ETFs vs gold ETFs. Source: Fernando Nikolić
BITCOIN ETFS RAPIDLY CATCH UP TO GOLD
Despite the recent volatility, Bitcoin ETFs have grown quickly compared to traditional commodity funds.
Fernando Nikolić, marketing director at Blockstream, pointed out on X that Bitcoin ETFs have already matched about 15 years of cumulative inflows into gold ETFs — and they did it in less than two years.
What makes the comparison notable is that this growth happened during a major Bitcoin correction. The cryptocurrency has fallen about 46% from its all-time high, yet ETF demand has remained strong.
For many market watchers, that resilience suggests institutional investors are still interested in Bitcoin even during periods of price weakness.