Crypto ETF See Mixed Flows Amid BTC Recovery

After five days of massive outflows, Bitcoin ETFs finally reconnect with positive flows. A wave of optimism is blowing over the crypto market, but technical and institutional indicators tell a different story. We give you more details in the following paragraphs.

Bitcoin ETFs Record $75.47 Million in Net Inflows

The BlackRock Bitcoin ETF leads with $60.61 million inflows on its own. This is a sharp reversal since the IBIT experienced a record outflow of 523 million dollars the day before.

Grayscale’s crypto ETF also attracts 53.84 million according to data. This is not the case for Fidelity and VanEck (HODL) who continue to lose ground. They respectively show withdrawals of 21.35 million dollars and 17.63 million dollars.

This rebound of Bitcoin ETFs coincides with a slight recovery of BTC. This crypto asset now trades around $92,200, after a drop below $90,000. And while it wavers, other assets capture attention. Notably, the Solana ETFs register $55.6 million in positive flows. As for XRP, it attracts 15.8 million dollars. Lesser known, Hedera (HBAR) earns $577,000.

Behind the Numbers, a Defensive Institutional Strategy

Behind this apparent rise of Bitcoin ETFs, analysts identify a posture shift. According to them, institutional investors are not abandoning. They are repositioning their exposure.

Proof: put options on IBIT reach highs. This reveals a hedging logic rather than a confident bullish bet.

American monetary policy continues to muddy the waters. Hopes for a rapid easing are collapsing. Indeed, the probability of a rate cut by the Fed in December dropped from 48.9% to 33.8%. A cautionary signal fueling the sentiment of strategic withdrawal rather than a return of risk appetite.

In any case, the recovery of flows on Bitcoin ETFs could announce a comeback or mask a simple technical adjustment. As long as the macroeconomic context remains unclear, caution remains essential.