US spot Bitcoin exchange-traded funds continued a cautious recovery, recording $371 million in net inflows last Friday and adding to indications that institutional demand may be stabilizing after weeks of persistent selling pressure.

Spot Bitcoin ETFs drew another $145 million in inflows on Monday as Bitcoin hovered near $70,000, according to data from SoSoValue and CoinGecko. While these inflows have not yet fully offset last week’s $318 million in outflows and the $1.9 billion in redemptions recorded so far this year, the slower pace of withdrawals may signal a potential turning point for cryptocurrency investment products, according to CoinShares.

“Outflows slowed sharply to $187 million despite heavy price pressure, with the deceleration in flows historically signaling a potential inflection point,” CoinShares head of research James Butterfill said in an update on Monday.

Early Bitcoin Holders Remain Engaged

Despite Bitcoin’s growing institutional footprint, early adopters have not been pushed out of the market, according to a senior executive at asset manager Bitwise, even as ETFs experienced heavy redemptions during the recent market decline that brought Bitcoin back toward price levels last seen in October 2024.

Analysts at research firm Bernstein described the recent downturn as the “weakest bear case” in Bitcoin’s history, noting the absence of major industry failures typically associated with deeper market stress.

Some observers have linked the volatility to Bitcoin’s expanding institutionalization, including ETFs, and concerns that increasing financialization could weaken the narrative of scarcity. However, this shift has not meaningfully discouraged early participants, Bitwise chief investment officer Matt Hougan said in comments to Bloomberg ETF analyst Eric Balchunas.

Hougan acknowledged that a “cypherpunk, libertarian OG core” of Bitcoin supporters may be uneasy with the rising influence of large asset managers such as BlackRock, though he described that group as a “shrinking minority.” Many early investors are instead taking partial profits after substantial gains rather than exiting entirely, he noted, adding that most remain active in the market even as institutional participation grows.

“They invested a few thousand dollars and ended up with millions,” Hougan said, adding: “The vast majority are still in it, and they’re being augmented by new institutional investors. I think the story that most of OG crypto is giving up on the space just doesn't align with the people that we talk to with the investors that are working with Bitwise.”

Broader ETF Segment Also Records Inflows

Alongside the tentative recovery in Bitcoin ETFs, spot altcoin ETFs also posted gains on Monday. Ether and XRP investment products attracted $57 million and $6.3 million in inflows, respectively, according to SoSoValue data, suggesting improving sentiment across segments of the crypto ETF market.

Sources:

https://cointelegraph.com/news/bitcoin-etf-rebound-145-million-inflows

https://x.com/EricBalchunas/status/2020978141024440421

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

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

https://www.coingecko.com/en/coins/bitcoin