Just when the market feared the worst, Wall Street jumped back in with both feet. On Monday, U.S.-listed spot Bitcoin ETFs shattered a brutal 4-day outflow streak $1.5B of outflows were recorded last week, recording a massive $561.8 million in net Bitcoin ETF inflows. This powerful resurgence of institutional demand, occurring as Bitcoin trades near nine-month lows, suggests the panic selling may have exhausted itself and a new phase of accumulation is beginning.
Analyzing the Sudden Bitcoin ETF Inflows
The data from Farside Investors reveals a decisive shift in sentiment. BlackRock’s IBIT and Fidelity’s FBTC led the charge with inflows of $142 million and $153.3 million respectively. This buying pressure emerged after Bitcoin’s weekend plunge briefly below $75,000, indicating that major institutions viewed the dip as a strategic entry point, not a reason to flee.
This resurgence is critical for market structure. It breaks the negative feedback loop where ETF redemptions fueled further price declines. The fact that inflows arrived amidst fear and volatility demonstrates a layer of deep, conviction-based buying that can help establish a price floor.
A Key Test of Holder Conviction
A fascinating divergence persists. While the spot price is roughly 40% below its October high, ETF holdings remain remarkably resilient, down only about 5% from their peak. However, the average cost basis across these funds is approximately $84,099, meaning current buyers (~$78,000) are immediately at a paper loss. This is a stern test of holder conviction; continued inflows at these levels would be an exceptionally bullish sign of long-term faith.
My Thoughts
This is the bullish pivot we needed. Significant Bitcoin ETF inflows after such a brutal drop suggest the smart money is stepping in. It transforms the narrative from “institutions are fleeing” to “institutions are re-accumulating at a discount.” While volatility will persist, this flow reversal is the first concrete signal that a local bottom may be forming. The key now is sustainability. If this marks the beginning of a new inflow trend, it could propel a powerful relief rally. Watch the flow data over the rest of the week—it’s now the most important indicator on the board.
