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After five weeks of continuous outflows, US Bitcoin ETFs rebounded with $744 million in net inflows this week. On Monday, March 17, ETFs recorded a $274 million inflow, the highest daily figure in over a month.

This turnaround hints at renewed confidence among institutional investors as macroeconomic concerns ease. However, Bitcoin still trades below $90,000 despite the positive trend.

Bitcoin ETFs Recover from $5 Billion Outflows

Since mid-February, US Bitcoin ETFs suffered over $5.3 billion in losses, with $3.5 billion withdrawn in one of the worst months on record. Institutional sell-offs, driven by market uncertainty, caused a steep decline.

However, March has brought a shift in sentiment. Inflows have increased steadily, signaling renewed market confidence. The week kicked off strong, with Bitcoin ETFs seeing $274 million in inflows on Monday, followed by six consecutive days of net gains.

On March 21, total net inflows reached $83.09 million, with BlackRock’s IBIT leading the surge at $150 million in positive flows. Meanwhile, Grayscale’s GBTC continued its outflow trend, losing $21.9 million that day.

Are Institutional Investors Anticipating a Bitcoin Rally?

The steady rise in ETF inflows suggests that large investors may be positioning for a potential Bitcoin recovery. Crypto analyst Zia ul Haque pointed to this resurgence, speculating that institutions might have inside knowledge.

𝐈𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐞𝐬 𝐬𝐭𝐚𝐫𝐭𝐞𝐝 𝐀𝐜𝐜𝐮𝐦𝐮𝐥𝐚𝐭𝐢𝐧𝐠 𝐀𝐠𝐚𝐢𝐧: 𝐃𝐨 𝐭𝐡𝐞𝐲 𝐤𝐧𝐨𝐰 𝐬𝐨𝐦𝐞𝐭𝐡𝐢𝐧𝐠?! 🤩

Bitcoin ETF saw a positive inflow for the last consecutive 5 days! 🔥

This is the major consecutive inflow this month.

From the beginning of March, giants… pic.twitter.com/Co6wCkia2I

— Zia ul Haque (@ImZiaulHaque) March 21, 2025

This observation aligns with Bitcoin’s price resilience, despite ongoing volatility. However, some analysts remain skeptical, arguing that ETF inflows do not necessarily indicate sustained buyer demand.

Market Volatility and ETF Arbitrage

While ETF inflows have improved, some analysts believe the market structure is shifting. Hedge funds may be using arbitrage strategies involving Bitcoin spot ETFs and CME futures, rather than direct BTC accumulation.

7/ Big takeaway?
•We don’t know if the pain is over yet, but it’s likely to end once this trade fully unwinds.
•The ETF “demand” was real, but some of it was purely for arbitrage. There was genuine demand for owning BTC, just not as much as we were led to believe.
•Until real…

— Kyle Chassé / DD🐸 (@kyle_chasse) February 27, 2025

If institutional demand remains speculative, Bitcoin’s price stability could remain uncertain despite the ETF inflow rebound.

Bitcoin and Ethereum Market Outlook

As of this writing, Bitcoin trades at $84,148, down 0.46% in the last 24 hours. Despite the ETF recovery, BTC’s price remains sluggish.

Meanwhile, Ethereum ETFs continue to struggle, posting 12 consecutive days of negative flows. This divergence highlights ongoing challenges in the broader crypto market.