Spot Bitcoin exchange-traded funds (ETFs) in the U.S. are showing strong signs of recovery. They registered $524 million in cumulative net inflows on Tuesday. This figure marks the Bitcoin ETF recovery following the October crash. The data comes from the Farside Investors platform.
This $524 million inflow is highly significant. It represents the largest positive daily flow since October 7. It is also the highest figure since the abrupt crash of the cryptocurrencies market on October 10. That crash severely impacted investor appetite. This data is welcomed by BTC holders. Ki Young Ju of CryptoQuant noted that ETFs, along with Michael Saylor’s purchases, are one of the two main demand vehicles this year. A sharp contrast was seen in other assets. Conversely, Ether ETFs saw $107 million in outflows on Tuesday.
This renewed demand coincides with key macroeconomic events in the U.S. The Senate approved a funding package. This agreement brings Congress closer to avoiding a government shutdown. The legislation is now headed to the House of Representatives for a full vote. The news appears to have improved risk appetite in the markets. Before this rebound, sentiment was very negative. ETFs had been mostly in the red since the crash. Platforms like Glassnode reported daily outflows of up to $700 million. This signaled a broad de-risking phase among ETF investors.
Is “smart money” betting on a new rally?
Likewise, optimism is also growing among the most successful traders. “Smart money” has added $8.5 million in net long Bitcoin positions. This occurred in the last 24 hours, according to the Nansen platform. This move signals growing optimism among the most experienced traders. However, analysts note that they still maintain a net short overall position. This position amounts to $202 million on the decentralized exchange Hyperliquid. Meanwhile, in the altcoin ecosystem, Solana ETFs extended their winning streak. They accumulated 11 days with $8 million in positive inflows.
Despite retail concerns about the end of the bull cycle, analysts view the recent correction as a healthy move. Lacie Zhang, a research analyst at Bitget Wallet, stated that it helps reset leverage. This “paves the way for renewed institutional entry,” according to the analyst. All eyes are on the November 13 CPI print. Nonetheless, a data delay due to the shutdown adds uncertainty. Favorable inflation data could fuel a liquidity-driven rally for the top digital asset.
