 ▲ Gold, Bitcoin (BTC), ETF / ChatGPT-generated image |
The Bitcoin (BTC) spot ETF market has halted its large-scale outflows and recorded net inflows for two consecutive days, sending a strong signal that the market has likely passed a bottom alongside a recovery in institutional investor demand.
According to crypto-focused media outlet Cointelegraph on February 10 (local time), U.S. Bitcoin spot ETFs attracted net inflows of $371 million last Friday and an additional $145 million on Monday, marking a clear shift into a recovery phase. This inflow, occurring as Bitcoin prices move sideways around the $70,000 level, suggests that the steep selling pressure seen over recent weeks is easing. Historically, a sharp slowdown in outflows from digital asset investment products has been interpreted as a turning point signaling a trend reversal in the market.
James Butterfill, Head of Research at CoinShares, highlighted that despite ongoing price pressure, outflows have declined significantly to $187 million, raising the possibility that the market has already reached an inflection point. While recent inflows are not sufficient to fully offset last week’s $318 million in outflows or the $1.9 billion in redemptions recorded since the start of the year, the visible shift in fund flows is seen as evidence that institutional sentiment is stabilizing.
Matt Hougan, Chief Investment Officer at digital asset manager Bitwise, analyzed that the institutionalization of Bitcoin has not prompted an exodus of early investors. In a discussion with Bloomberg ETF analyst Eric Balchunas, Hougan stated that “the vast majority of early investors who turned a few thousand dollars into millions are still in the market.” While there is a small group that feels uncomfortable with the growing influence of large asset managers such as BlackRock, most early holders are understood to have opted for partial profit-taking after substantial gains rather than exiting the market altogether.
Research firm Bernstein recently described the current price downturn as the weakest bear-market scenario in Bitcoin’s history. This assessment is based on the absence of the large-scale industry collapses or systemic failures that occurred during periods of severe market stress in the past. Experts note that the temporary volatility accompanying Bitcoin’s financialization is not undermining its scarcity narrative but instead represents an accumulation phase that enhances its credibility as a mainstream asset.
The spot ETF market for altcoins is also gaining momentum in step with Bitcoin’s rebound. According to data from SoSoValue, as of Monday, Ethereum spot ETFs saw inflows of $57 million, while XRP spot ETFs attracted $6.3 million. XRP is spelled as XRP upon first mention, and with simultaneous inflows into major assets including Bitcoin and Ethereum, the overall liquidity structure of the digital asset ecosystem appears to be shifting in favor of bullish participants.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*