Although spot Bitcoin exchange-traded funds (ETFs) traded in the US have recorded net capital inflows for two consecutive weeks, experts say the current figures are not sufficient to conclude that institutional investors have made a strong return to the market. According to an analysis based on SoSoValue data, spot Bitcoin ETFs saw net inflows of $75.67 million last week, compared to $197.4 million the previous week.
The positive trend of the last two weeks follows an eight-week uninterrupted outflow from spot Bitcoin ETFs. During that period, there were net outflows of over $8 billion. Therefore, the inflows seen in recent weeks are still far from offsetting the previous losses.
The total net inflow recorded over the last two weeks is only slightly above $226.84 million, the lowest weekly net outflow in the eight-week outflow period. This indicates that the recovery seen in ETFs is still limited and does not provide concrete evidence of a strong return of institutional capital to the market.
Digital asset research company BRN made a similar assessment, emphasizing that ETF fund flows should be the first thing to track when analyzing the direction of the Bitcoin market. According to the company, for institutional investors to be considered to have structurally re-entered the market, the net inflow trend needs to continue steadily for several weeks, not just be limited to two weeks.
Analysts point out that spot Bitcoin ETFs are one of the most important indicators reflecting institutional investor demand, particularly in the US. Therefore, fund flow data to be released in the coming weeks is considered critical for the medium-term direction of the Bitcoin price. Strengthening net inflows could signal a renewed institutional investor confidence, while weak inflows could support the view that the current recovery may be temporary.
*This is not investment advice.
