US Spot Bitcoin ETFs See Major Inflow Resurgence, Signaling Shifting Market Sentiment

The US spot Bitcoin Exchange Traded Fund (ETF) market is experiencing a significant revival in capital momentum, with Wednesday alone witnessing an impressive influx of over $500 million. This marks the strongest performance in nearly three weeks, suggesting a crucial turning point from previously entrenched investor pessimism.

According to data from SoSoValue, all twelve US spot Bitcoin ETFs collectively recorded a net inflow of $506.5 million. Leading the charge was BlackRock’s IBIT, which attracted a substantial $297.4 million. Notably, six other prominent funds, including Fidelity and Grayscale, also reported net positive inflows, indicating broad-based renewed interest.

Institutional Confidence Returns, Albeit Cautiously

“These capital inflows signal a shift in institutional investor sentiment towards cautious accumulation, following a period characterized by de-risking,” commented Vincent Liu, Chief Investment Officer at Kronos Research. He added a note of prudence: “While market sentiment appears to be stabilizing, overall positioning remains relatively restrained, suggesting we haven’t yet reached a state of blind optimism.”

This resurgence follows a challenging period for the cryptocurrency market. Since the start of the year, increased volatility and softer crypto prices have significantly impacted both retail and institutional confidence. As recently as February 20, spot Bitcoin ETFs faced an unenviable record of five consecutive weeks of net outflows, bleeding over $3.8 billion in capital.

Altcoin ETFs Join the Inflow Wave

Beyond Bitcoin, other major digital assets also benefited from the renewed investor appetite. Ethereum (ETH), Ripple (XRP), and Solana (SOL) ETFs all registered net inflows on Wednesday. Ethereum ETFs alone attracted $157 million, while Solana ETFs saw a notable $30.9 million inflow – its highest single-day record since mid-December 2025 (Note: The year ‘2025’ is as per the original article and may be a typo for an earlier year).

Crypto Prices Rally, But Caution Lingers

The influx of capital has naturally translated into a robust price recovery across the board. Bitcoin has bounced back strongly from its early-week lows below $63,000, now trading around $68,000. Ethereum also experienced a significant surge, climbing 7.6% to firmly establish itself above the $2,000 threshold.

Despite the positive momentum, a degree of market caution persists. The Crypto Fear & Greed Index, while improving significantly to “11” (out of 100) from an earlier “5” this week, still resides firmly within the “Extreme Fear” zone. This suggests that while immediate panic has subsided, underlying confidence has yet to fully recover.

Deciphering the Rebound: Speculation vs. Fundamentals

The strong rebound has sparked various market speculations. Some investors attribute the recovery to a temporary halt in a rumored daily “dumping” trend, purportedly led by Jane Street, which was said to consistently occur at 10 AM ET. Whispers suggest that this “10 AM sell-off” phenomenon vanished after Jane Street was reportedly sued by Terraform Labs.

However, analysts are urging caution against overemphasizing any single factor. Jeff Park, an advisor at Bitwise, highlighted that it’s challenging for any individual institution to unilaterally dictate the trajectory of the entire cryptocurrency market.

Nick Ruck, Director of LVRG Research Center, echoed this sentiment: “While reports of a pause in Jane Street’s selling may have eased concerns over selling pressure, this rebound appears to be more of a temporary reprieve rather than a long-term fundamental reversal at this stage.”

Ruck underscored that the sustainability of this rebound hinges on the stability of the broader macroeconomic environment and the continued ability of ETFs to attract consistent capital inflows, ultimately translating into more structural, long-term institutional buying.