Bitcoin ETFs Record $1 Billion Influx Across Three Trading Days as Dip-Buyers Return
Following prolonged withdrawal periods, SoSoValue reports a three-day turnaround with BlackRock's IBIT driving the majority of incoming capital.
Exchange-traded funds focused on spot Bitcoin attracted over $1 billion in net capital inflows across a three-day trading period this week, marking a notable turnaround despite Bitcoin's price continuing to trade significantly under its all-time high.
According to SoSoValue data, Bitcoin (BTC) ETFs listed in the United States accumulated a total of $1.02 billion in inflows between Tuesday and Thursday. Wednesday represented the strongest performance among the three sessions, bringing in $506.51 million in net inflows.
During a Friday post on X, ETF analyst Nate Geraci suggested that market participants seem to be "buying the dip" in spite of the recent market decline.
According to Geraci, spot Bitcoin ETFs have experienced approximately $6.5 billion in capital outflows since Bitcoin reached its all-time high during early October, a number he characterized as relatively small when compared to the roughly $55 billion in total inflows the category has accumulated since January 2024.
50% drawdowns are walk in the park for long-time BTC investors. But appears newer ETF investors aren't worried either.
Nate Geraci
Capital influx breaks multi-week withdrawal pattern
The current week's positive flows represent a reversal following five straight weeks of net capital withdrawals, with January's final two weeks alone accounting for a combined $2.82 billion in outflows.
BlackRock's iShares Bitcoin Trust (IBIT) spearheaded the recovery, recording $275.82 million in net capital inflows on Thursday by itself. While Fidelity's FBTC and Ark 21Shares' ARKB experienced outflows, these were offset by positive performance from other products including Bitwise's BITB and Grayscale's BTC.
Exchange-traded funds tracking alternative cryptocurrencies have similarly shifted to positive territory during recent trading days. Spot Ether (ETH) ETFs accumulated approximately $173 million throughout the identical three-day timeframe, while Solana-focused funds brought in around $35 million in net inflows. At the same time, XRP (XRP) ETFs registered a more conservative $7 million in incoming capital.
Market observers identify ETF activity as investor sentiment indicator
These capital inflows arrive as industry participants evaluate whether the recent wave of selling activity is beginning to subside. Multiple analysts indicated on Friday that Bitcoin's approximately 50% price drawdown could be nearing its conclusion.
In earlier comments to Cointelegraph, CoinEx chief analyst Jeff Ko indicated that positive developments in spot ETF inflows point toward diminishing aggressive selling pressure. Nevertheless, he cautioned that a rapid V-shaped recovery appears improbable following such a significant decline.
Echoing similar sentiments, Bitrue research lead Andri Fauzan Adziima highlighted oversold technical indicators and suggested that continued ETF inflows might function as a trigger for market stabilization.