Spot Bitcoin exchange-traded funds have finally returned to positive territory after enduring five straight weeks of capital withdrawals. Flow data shows that the just-concluded week delivered a strong rebound in investor demand, although the late surge was not enough to fully repair the damage recorded earlier in February.
Investors Pour $787 Million Into Spot Bitcoin ETFs
According to data from SoSoValue, Spot Bitcoin ETFs posted a combined $787.31 million in net inflows during the week, which was the first green weekly print after five consecutive weeks of outflows. The turnaround was mostly facilitated by three straight days of positive flows on Tuesday, Wednesday, and Thursday, which helped tip the balance back into positive territory.
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Last week’s numbers and the change in momentum show that institutional and ETF-based investors chose last week to step back into Bitcoin after an extended period of consecutive outflows. However, despite the strong weekly performance, the entire monthly net flow still ended in red due to the depth of withdrawals that occurred earlier in the month. As such, February ultimately closed with a total net outflow of $206.52 million from Spot Bitcoin ETFs.
Spot Bitcoin Weekly Netflows. Source: SoSoValue
The resilience of ETF holders was also highlighted by crypto pundit Nate Geraci on the social media platform X. He noted that investors in Spot Bitcoin ETFs have largely maintained conviction during recent Bitcoin downturns.
Geraci’s remarks described the recent withdrawals as modest in the broader context of the asset class’s overall growth. He pointed out that since Bitcoin reached its record high in early October, Spot Bitcoin ETFs have experienced about $6.5 billion in net outflows.
However, he also noted that this figure is small relative to the $55 billion that the funds have attracted since their launch in January 2024. He also referenced the over $1 billion in inflows from Tuesday to Thursday, which is another example of how quickly sentiment can change.
Spot Ethereum ETFs Follow The Recovery
The rebound was not limited to Bitcoin-based funds. Spot Ethereum ETFs also recorded investor interest midweek, breaking what would have become a six-week streak of consecutive outflows.
For the week, Spot Ethereum ETFs finished with a net inflow of $80.46 million. Although smaller in scale compared to Bitcoin’s figures, the inflow is the first broader stabilization in crypto ETF sentiment.
Spot Ethereum Weekly Netflows. Source: SoSoValue
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Taken together, the inflows into both Bitcoin and Ethereum ETFs indicate that institutional appetite may be rebuilding after several weeks of consecutive withdrawals. Whether this is the beginning of a sustained recovery or a short-term relief bounce will also depend on broader market conditions and how current geopolitical tensions resolve in the weeks ahead.
Featured image from Unsplash, chart from TradingView
The Bitcoin (BTC) again dropped below the crucial price level of $30k. Recently, BTC went on to touch the $32K price level. However, experts called it bear fakeout and mentioned not to fall for it. Meanwhile, the pundits have suggested that this bear market condition can continue further.
Fed Rate hikes wallop BTC
Last month proved horrific for the global cryptocurrency market. The world’s largest cryptocurrency’s price dropped by around 30% in May. BTC’s dominance has come down to stand at 46%. Mike Mcglone, senior commodity strategist at Bloomberg Intelligence, informed that Bitcoin is standing at an inflection point. This reflects that the token has come to a point where the curve might change to result in a sloping down or upward position.
He mentioned that Federal Reserve fighting inflation is a primary headwind for the Bitcoin and digital asset market at the start of June. As per reports, the Federal Reserve is looking to maintain the hardening monetary police. Lael Brainard, vice chair of Fed, said that from the data it looks like “market pricing for 50 basis points potentially in June and July”. BTC’s prices are down by over 2% in the last 24 hours.
Brainard added that the Fed will likely raise rates. However, the hike will be less than expected. The US inflation rate is recorded highest in the last 40 years.
BTC might slump more
A crypto expert suggested that this Bitcoin down trend may continue ahead. He pointed out that market may consolidate in this range before dropping down eventually. He proposed the BTC might drop to the range of $22K to $24K price range. However, it will hover around the price support price zone before crashing.
Bitcoin is trading at an average price of $29,700, at the press time. As per Glassnode, around $1.3 billion has been flown out of Bitcoin. However, the net outflow stands at $698 million. Meanwhile, the global crypto market is also down by around 2% over the past day. It stands at $1.23 trillion.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.