U.S. spot bitcoin exchange-traded funds (ETFs) extended a temporary rebound after attracting net inflows of $371 million last Friday, adding to signs that institutional demand may be stabilizing after weeks of steady selling.
Spot Bitcoin (BTC) ETF attracts another $145 million in inflows as BTC on Monday Hoover Approximately, 70,000,000, According to Data from Sosualu and Kongiko.
The influx has yet to top last week’s $318 million in outflows and roughly $1.9 billion in redemptions, but the slower pace of losses could point to a potential trend reversal for crypto investment products, according to CoinShares.
“Expenses fell sharply to $187 million despite heavy pricing pressure, with declining flows historically indicating a potential inflection point,” James Butterfill said in an update Monday.
BitVice says early bitcoin holders are immune to institutional inflows
Bitcoin’s growing institutional presence has not driven early investors out of the market, according to a senior executive at asset manager BitWise.
Analysts at research firm Bernstein described the recent downturn as the “weakest bear case” in bitcoin history, noting the absence of major industry failures typically associated with deep crypto market pressures.
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With no clear single catalyst behind the decline, some market watchers have linked the volatility to bitcoin’s growing institutionalization, including in ETFs, and concerns that broader financial tightening could undercut the asset’s scarcity narrative.
However, the change hasn’t meaningfully deterred early adopters, Bitways chief investment officer Matt Hogan said in comments to Bloomberg ETF analyst Eric Balchunas.
Hogan acknowledged that the “cypherpunk, libertarian OG core” of bitcoin supporters may be uncomfortable with the growing influence of large asset managers like BlackRock, but described the group as a “shrinking minority.”
Many early investors are taking partial profits after big gains instead of exiting the market entirely, he said, adding that most investments are held even as new institutional buyers enter the space.
“They invested a few thousand dollars and ended up with millions,” Hogan added.
“The vast majority are still in it, and they’ve been boosted by new institutional investors. I think the story that most OG is giving up on the crypto space just doesn’t align with the people we talk to with the investors who are working with BitWise.”
In a rebound in bitcoin ETFs, spot altcoin ETFs also posted gains on Monday, with Ether (ETH) and XRP (XRP) seeing inflows of $57 million and $6.3 million, respectively. According to To Sosovalu Data.
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