Data shows the Bitcoin spot ETFs have seen seven consecutive days of inflows, a potential sign that demand momentum is returning in the market.
Bitcoin Spot ETFs Have Just Seen A $199 Million Net Inflow Spike
The spot exchange-traded funds (ETFs) refer to investment vehicles that allow for indirect exposure to an underlying asset’s price movements. For Bitcoin, these funds obtained approval in the United States back in January 2024.
The main appeal of spot ETFs is that investors don’t need to interact with blockchain components like digital asset wallets and exchanges in order to invest into the cryptocurrency. This has made them a popular mode of investment for BTC among the more traditional traders like institutional entities.
As the below chart for the netflow of the Bitcoin spot ETFs from SoSoValue shows, the demand from such investors was weak earlier as the funds faced a flurry of outflows.
Looks like the value of the metric has been positive in recent days | Source: SoSoValue
These outflows had come as the wider cryptocurrency sector witnessed a bearish shift. In the last few weeks, however, demand has shown signs of returning as capital has gradually started to pour back in.
The last week, especially, has seen a consistent stream of inflows, with the netflow sitting at a positive value for its entire duration. Though, while the inflows have been consistent, their scale hasn’t been terribly large; the largest spike during this period involved a value of $250 million, a few factors smaller than the largest inflows from January.
Ethereum, the second largest digital asset by market cap, has also had spot ETFs available in the US since mid-2024 and just like the Bitcoin funds, they have also enjoyed some inflows recently.
The trend in the US spot ETF netflow for ETH over the last few months | Source: SoSoValue
As displayed in the above graph, the US Ethereum spot ETFs have seen six consecutive days of net inflows, one day short of Bitcoin’s streak. The latest spike in the netflow has corresponded to over $138 million flowing into these funds. For comparison, the BTC spot ETFs have witnessed inflows of about $199 million.
The latest market inflows have arrived alongside a recovery surge for the coins, with Bitcoin rising to around $74,000 and Ethereum to $2,300. It now remains to be seen whether the spot ETFs will continue to enjoy positive netflows in the coming days, extending the streak.
In some other news, the top 100 USDC addresses on the Ethereum network today hold about 32.71 billion tokens of the stablecoin, as highlighted by on-chain analytics firm Santiment in an X post.
How the supply held by the largest USDC addresses has changed over the past few years | Source: Santiment on X
From the chart, it’s apparent that the latest holdings of the top USDC wallets exceeds the high witnessed back in February 2022. “The top 6 alone now hold just over a quarter (25.6%) of the entire supply,” noted Santiment.
BTC Price
At the time of writing, Bitcoin is floating around $73,900, up more than 6% over the last seven days.
The price of the coin seems to have cooled off since its high | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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