 ▲ Bitcoin (BTC) Exchange-Traded Fund (ETF) |
Despite plunging 46% from its all-time high and undergoing a severe price correction, market leader Bitcoin (BTC) is seeing massive institutional capital flow into spot exchange-traded funds (ETFs) for the second consecutive week, signaling the beginning of an unprecedented bottom-buying phase.
According to investment outlet TradingNews on March 8 (local time), Bitcoin is currently trading below $67,000, while IBIT closed at $38.60 in Friday’s session. Total net assets of U.S. spot Bitcoin products have reached $87.07 billion, with weekly trading volume surging 62% from the previous week to $25.87 billion. Despite nearly halving from its 52-week high, institutional buying has recorded net inflows for two straight weeks, marking one of the most striking divergences defining the current market.
A closer look at fund flows reveals a meticulous and calculated institutional strategy. From March 2 to 4, a strong $1.145 billion in buying pressure entered the market over three days. However, $576.66 million flowed out on Thursday and Friday combined, erasing more than half of the early-week inflows. Ultimately closing the week with net inflows of $568.45 million, this pattern reflects the systematic behavior typical of institutions, balancing risk management and profit-taking rather than engaging in blind accumulation.
This trend is especially meaningful as it follows a harsh five-week period that saw $3.8 billion in outflows. Spot Ethereum (ETH) products, the second-largest cryptocurrency by market capitalization, also broke a five-week streak of outflows with $23.56 million in weekly net inflows. However, they demonstrated acute vulnerability to short-term volatility, as $169.41 million flowed in on Wednesday alone, only to be completely reversed within two days.
Experts note that Bitcoin adoption is advancing at a pace rarely seen in the history of traditional finance. Bitcoin spot products have matched in just 24 months the asset accumulation that gold ETFs achieved over 15 years since their launch. The renewed wave of substantial inflows, even after enduring a severe downturn and massive outflows, underscores robust institutional demand that views the current bear market as a buying opportunity rather than a structural breakdown.
The market’s direction is expected to hinge largely on the upcoming U.S. Consumer Price Index release. The outlet pointed out that expectations for interest rate cuts are dominating the market following a shocking decline of 92,000 in nonfarm payrolls. It advised actively accumulating IBIT, currently trading around $38.60, while using $35.30—its year-to-date low—as a clear risk management benchmark.
Disclaimer: This article is for investment reference only and assumes no responsibility for investment losses incurred based on its content. The information provided should be interpreted solely for informational purposes.