US spot Bitcoin exchange-traded funds saw a sharp pickup on Wednesday, posting $457 million in net inflows — the strongest single-day result in over a month and a sign that institutional interest may be regaining momentum. Fidelity’s Wise Origin Bitcoin Fund (FBTC) accounted for the bulk of the activity, attracting roughly $391 million, while BlackRock’s iShares Bitcoin Trust (IBIT) added about $111 million, based on Farside Investors data.

These inflows pushed cumulative net inflows for US spot Bitcoin ETFs beyond $57 billion, with total net assets climbing above $112 billion. That figure now represents roughly 6.5% of Bitcoin’s overall market capitalization. The surge follows a volatile period in November and early December, when ETF flows swung between modest inflows and pronounced outflows. The last time daily inflows exceeded $450 million was Nov. 11, when ETFs collectively drew in around $524 million.

Early positioning rather than late-cycle enthusiasm

According to Vincent Liu, chief investment officer at Kronos Research, the renewed ETF demand appears to reflect early-stage positioning rather than exuberant late-cycle behavior. “ETF inflows feel like early positioning,” Liu said. “As rate expectations soften, BTC becomes a clean liquidity trade again. Politics sets the mood, but capital moves on macro.”

Liu added that while the broader trend could persist, it may unfold unevenly. “Momentum likely holds, but expect it to be uneven,” he said. “Flows will track liquidity and price action. As long as BTC remains a clean macro expression, ETFs stay the path of least resistance.”

Adding to the macro backdrop, US President Donald Trump said on Wednesday that he intends to appoint a new Federal Reserve chair who strongly supports interest rate cuts. During a national address marking the first year of his second term, Trump said the announcement would come early next year and that all shortlisted candidates favor lower rates than current policy levels. Lower interest rates are typically viewed as supportive for risk assets, including cryptocurrencies.

Loss-heavy supply and fragile demand persist

Despite the ETF rebound, Bitcoin has returned to price levels last seen nearly a year ago, leaving a large overhead supply zone between $93,000 and $120,000 that continues to limit recovery attempts. This structure has driven the amount of Bitcoin held at a loss to approximately 6.7 million BTC, the highest level recorded in the current market cycle, according to Glassnode.

Glassnode noted that demand remains fragile across both spot and derivatives markets. Spot buying has been selective and short-lived, corporate treasury activity has been sporadic, and futures positioning continues to focus on de-risking rather than rebuilding conviction. Until selling pressure above $95,000 is absorbed or new liquidity enters the market, Bitcoin is likely to remain constrained between overhead resistance and structural support near $81,000.

Sources:

https://insights.glassnode.com/the-week-onchain-week-50-2025/?utm_campaign=WoC_51_25&utm_medium=email&utm_source=newsletter

https://cointelegraph.com/news/spot-bitcoin-etfs-457m-inflows-early-positioning

https://farside.co.uk/bitcoin-etf-flow-all-data/

https://farside.co.uk/btc/