For the first time in a month, U.S. Bitcoin exchange-traded funds have recorded consecutive net inflows, snapping a redemption streak that had stretched back since mid-January. According to data provided, the positive flow began this Friday with 471.1 million dollars, adding another 144.9 million dollars during Monday’s trading session.
This recovery of institutional interest coincides with the rebound of the asset’s price, which rose from 60,000 dollars last Thursday to stand near 70,000 dollars today. Despite the extreme volatility, the confidence of large investors seems to remain solid, evidenced by the resilience of the assets under management in the main financial products.
Institutional resilience against the drastic drop in the spot market price
Although Bitcoin has suffered a setback of more than 40% since its all-time highs in October, the assets under management of ETFs have barely decreased by 7%. According to Checkonchain, the cumulative holdings of these financial products went from 1.37 million to 1.29 million BTC, which demonstrates a low redemption rate by long-term institutional investors.
This divergence between the spot price and the capital retained in the funds suggests that investor sentiment remains optimistic regarding the future prospects of the leading digital asset. While forced liquidations affected the futures markets, holders of shares in Bitcoin exchange-traded funds mostly chose to maintain their positions, avoiding a massive flight of capital.
However, the altcoin market and tokens linked to artificial intelligence have shown superior performance to the leading currency in the last few hours. Although the sentiment indicator continues to mark extreme fear, certain sectors of the cryptographic ecosystem show signs of reactivation, led mainly by speculative assets that take advantage of the temporary stabilization of the Bitcoin price.
Is the current capital flow into Bitcoin ETFs sustainable in the current context?
Furthermore, futures data reveal a deep deleveraging process in the main exchanges, with funding rates that remain significantly negative lately. However, the options market is starting to issue signals of stability, suggesting that long-term volatility expectations are balancing out, allowing for a much healthier base for a possible sustained upward movement soon.
On the other hand, the importance of this milestone lies in the validation of regulated investment vehicles as a strategic refuge during periods of global macroeconomic uncertainty. The ability of these funds to attract fresh capital after a 50% drop from the October highs highlights the maturity of the institutional sector, distancing itself from the purely retail nature that dominated previous bearish cycles.
Ultimately, the current situation presents a panorama of caution but with an institutional support base that seems immovable in the face of daily fluctuations. It is expected that, if capital inflows continue, Bitcoin’s price will find the necessary momentum to overcome the psychological barrier of 70,000 dollars, finally dissipating doubts about the continuity of the bull market.
