Bitcoin ETFs Record Strongest Inflows in Over a Month
US spot Bitcoin ETFs recorded $457 million in net inflows on Wednesday, marking their strongest single-day performance in more than a month and signaling a renewed wave of institutional interest.
The surge comes after weeks of uneven flows through November and early December, when ETFs oscillated between modest inflows and sharp redemptions as Bitcoin struggled to regain higher price levels.
Fidelity and BlackRock Lead the Charge
The majority of Wednesday’s inflows were concentrated in two funds:
- Fidelity Wise Origin Bitcoin Fund (FBTC): ~$391 million inflows
- BlackRock iShares Bitcoin Trust (IBIT): ~$111 million inflows
Meanwhile, several other funds saw smaller outflows:
- Bitwise BITB: ~$8.4 million
- ARK 21Shares ARKB: ~$37 million
- Hashdex DEFI: ~$1.5 million
Despite these mixed movements, the net result underscored renewed conviction among large allocators.
ETF Assets Reach New Scale
The inflows pushed cumulative net inflows for US spot Bitcoin ETFs above $57 billion, while total net assets climbed past $112 billion — roughly 6.5% of Bitcoin’s total market capitalization.
The last time ETF inflows exceeded $450 million was Nov. 11, when funds attracted approximately $524 million in a single day, suggesting the latest move may represent another inflection point.
Early Positioning, Not Late-Stage Euphoria
According to Vincent Liu, chief investment officer at Kronos Research, the renewed ETF demand reflects early macro positioning rather than speculative enthusiasm.
“ETF inflows feel like early positioning,” Liu said. “As rate expectations soften, BTC becomes a clean liquidity trade again.”
He emphasized that while political developments can influence sentiment, capital ultimately follows macro liquidity conditions — a trend increasingly visible in ETF flows.
Macro Expectations Drive Renewed Interest
The timing of the inflows coincided with renewed expectations of lower US interest rates.
US President Donald Trump stated that he plans to appoint a new Federal Reserve chair who strongly supports rate cuts, adding that all known candidates favor lower rates than current policy levels. Historically, expectations of lower rates have supported risk assets, including equities and cryptocurrencies.
Lower rates typically:
- Reduce opportunity cost of holding BTC
- Increase liquidity across markets
- Encourage portfolio diversification into alternative assets
Market Structure Still a Headwind
Despite ETF inflows, Bitcoin continues to face structural challenges.
BTC has returned to price levels last seen nearly a year ago, leaving a dense supply zone between $93,000 and $120,000, which continues to cap recovery attempts.
According to Glassnode:
- 6.7 million BTC are currently held at a loss
- This represents the highest level of underwater supply in the current cycle
Demand Remains Fragile
Onchain data suggests demand is improving but remains fragile:
- Spot buying has been selective and short-lived
- Corporate treasury purchases are episodic
- Futures traders continue to reduce risk rather than rebuild leverage
Glassnode noted that until sellers are absorbed above $95,000 or fresh liquidity enters the system, Bitcoin is likely to remain range-bound, with structural support near $81,000.
ETFs as the Macro Expression of Bitcoin
Even amid choppy price action, Bitcoin ETFs continue to act as the cleanest macro vehicle for institutional exposure to BTC.
As long as Bitcoin remains viewed as a liquid macro asset tied to rates, inflation and global liquidity, ETF flows are likely to remain a key barometer for institutional sentiment — even if price action lags in the short term.
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