US Bitcoin Spot ETFs Witness Significant Inflow Reversal, Signaling Market Rebound

After enduring a six-day period of net outflows, US Bitcoin spot Exchange Traded Funds (ETFs) have finally experienced a welcome turnaround, recording a substantial net inflow of $240 million on Thursday. This significant shift signals a potential warming of market sentiment and renewed investor confidence in digital assets.

Leading the Charge: Key ETF Performance

According to SoSoValue data, BlackRock’s IBIT once again asserted its dominance as the top performer, attracting an impressive $112.4 million in a single day. Close behind was Fidelity’s FBTC, which saw net inflows of $61.6 million. The ARKB fund, a collaborative effort between ARK Invest and 21Shares, also garnered significant interest with $60.4 million. Bitwise’s BITB rounded out the notable performers, recording a net inflow of $5.5 million.

Market Activity Heats Up

The resurgence in capital inflows was mirrored by an increase in trading activity. On Thursday, the combined trading volume for all 12 US Bitcoin spot ETFs reached $4.77 billion, a notable increase from the previous day’s $4.07 billion. This uptick in volume further underscores the renewed market engagement.

Thursday’s robust net inflow successfully brought an end to a challenging six-day streak that saw a total of $2.05 billion withdrawn from these funds. Market analysts suggest that the recent selling pressure, driven by profit-taking and deleveraging, may now be nearing its conclusion, paving the way for more stable market conditions.

Bitcoin Under Pressure Amidst Optimistic Outlook

Despite the renewed capital interest in spot Bitcoin ETFs, Bitcoin itself continued to face downward pressure. According to CoinGecko market data, the leading cryptocurrency experienced a 1.9% decline over the past 24 hours and an 8.2% drop over the past week. Ethereum also saw a 2.4% dip in 24 hours, trading at $3,294.

However, analysts at JPMorgan maintain an optimistic long-term outlook. They project that if the “volatility-adjusted value” comparison between Bitcoin and gold continues to improve, Bitcoin could potentially climb to approximately $170,000 within the next 6 to 12 months, highlighting its potential as a store of value.

Ethereum ETFs Follow Suit

Adding to the positive sentiment, US-listed Ethereum spot ETFs also reversed their recent trend on Thursday. These funds welcomed a net inflow of $12.5 million, effectively ending a six-day period of continuous capital outflows, mirroring the positive shift seen in their Bitcoin counterparts.