United States exchange-traded funds marked a positive turn this Wednesday, recording 75.4 million dollars in net inflows following a difficult week. This rebound in spot Bitcoin ETFs coincides with the asset’s price recovery above 92,000 dollars, breaking a five-day streak of red numbers according to recent data from Farside Investors.
Leading this trend shift was BlackRock’s iShares Bitcoin Trust (IBIT), attracting 60.6 million dollars in a single trading session. Although this figure is positive, it is still far from offsetting the 523 million dollars that exited the fund the previous day. Meanwhile, the Grayscale Bitcoin Mini Trust also contributed significantly, adding 53.8 million dollars to the ecosystem’s institutional reserves. However, not all funds shared this optimism, as Fidelity and VanEck experienced combined outflows of 39 million dollars in the same period, reflecting persistent caution among certain asset managers.
Does this slight rebound represent the end of November’s institutional bleeding?
The previous negative streak was severe, accumulating nearly 3 billion dollars in total losses throughout the course of November. Recent data indicates that exchange-traded products globally suffered their highest weekly outflow record since the month of February, losing nearly 2 billion dollars last week. Of this massive figure, US-based products accounted for 97% of the outflows, putting November on track to surpass February as the worst historical performing month for this investment category.
On the other hand, while the 75 million inflow is modest compared to recent outflows, it offers a glimmer of hope regarding investor appetite. Fund trading volume increased to 6.89 billion dollars, representing an increase of nearly 18% compared to the previous day. This suggests that, although there is a general outflow trend, not all investors are exiting their current positions. Some participants appear to be taking advantage of the price drop to re-enter the market ahead of potential year-end catalysts.
In summary, the momentary stability of Bitcoin’s price seems intrinsically linked to these institutional capital flows and their daily behavior. While cryptocurrencies volatility persists, the funds’ ability to attract capital again could be decisive for the year’s close. Liquidity conditions are expected to change favorably, but US macroeconomic factors remain a latent threat that could dictate the course of digital assets in the coming weeks if inflation or interest rates do not align with market expectations.
