Spot Bitcoin exchange-traded funds (ETFs) recorded more than $1 billion in net inflows across three trading sessions this week, signaling a shift in investor behavior even while Bitcoin remained well below its previous peak.

US-listed spot Bitcoin ETFs accumulated a combined $1.02 billion in inflows between Tuesday and Thursday, according to SoSoValue data. Wednesday marked the strongest single-day performance, with funds attracting $506.51 million.

ETF analyst Nate Geraci said investors appeared to be “buying the dip” following the recent downturn. He noted that spot Bitcoin ETFs have seen roughly $6.5 billion in outflows since Bitcoin’s record high in early October, which he described as modest compared with the approximately $55 billion in inflows recorded since January 2024.

“50% drawdowns are walk in the park for long-time BTC investors,” Geraci wrote. “But appears newer ETF investors aren’t worried either.”

Flow reversal ends extended withdrawal streak

The inflows followed five consecutive weeks of net outflows, including $2.82 billion withdrawn during the final two weeks of January. The rebound was led by BlackRock’s iShares Bitcoin Trust (IBIT), which recorded $275.82 million in net inflows on Thursday alone. Although Fidelity’s FBTC and Ark 21Shares’ ARKB posted outflows, gains across other funds, including Bitwise’s BITB and Grayscale’s BTC products, outweighed the declines.

Momentum also improved across altcoin ETFs. Spot Ether ETFs added about $173 million during the same three-day period, Solana funds attracted roughly $35 million, and XRP ETFs recorded approximately $7 million in inflows.

ETF activity increasingly viewed as sentiment indicator

The renewed inflows arrived as market participants debated whether recent selling pressure may be easing. Several analysts suggested that Bitcoin’s roughly 50% drawdown could be approaching exhaustion.

CoinEx chief analyst Jeff Ko previously stated that improving spot ETF flows may indicate fading aggressive selling pressure, while cautioning that a rapid V-shaped recovery remains unlikely after a steep decline.

Bitrue research lead Andri Fauzan Adziima similarly pointed to oversold technical indicators, noting that sustained ETF inflows could act as a stabilizing catalyst for broader market sentiment if maintained.

Sources:

https://cointelegraph.com/news/bitcoin-etfs-1b-inflows-drawdown-dip-buying

https://x.com/NateGeraci/status/2027222628851728805

https://sosovalue.com/assets/etf/us-btc-spot

https://sosovalue.com/assets/etf/us-eth-spot