Bitcoin ETFs Draw Nearly $1 Billion in Six-Day Inflow Streak
Key Takeaways
- •Nearly $1 billion flowed into spot Bitcoin ETFs over six consecutive days, with BlackRock, Morgan Stanley, and Grayscale funds receiving over $930 million in aggregate.
- •Bitcoin traded near $65,860, gaining roughly 1% over the past week, yet remains almost 50% below its October record high of $126,080.
- •CoinShares researchers believe Bitcoin has likely reached or is near its price floor but do not foresee significant upside potential given current macroeconomic conditions.
- •An NYDIG report attributes Bitcoin's current decline to supply mechanics rather than broader risk sentiment, noting it is the worst-performing asset class year-to-date.
- •NYDIG cautioned that if Bitcoin's drawdown resembles previous bear markets, including 2022, prices could fall to a cycle low between $38,000 and $39,000.
American investors have directed new money into Bitcoin exchange-traded funds over the past six days, a stretch of inflows that has coincided with another rise in the price of the largest cryptocurrency.
Data from Farside Investors shows that nearly $1 billion has flowed into the funds since Tuesday of last week. Bitcoin was recently trading near $65,860, slightly lower over the previous 24 hours but up 1% over seven days. The cryptocurrency reached a weekly high of $66,891 yesterday.
Funds managed by BlackRock, Morgan Stanley, and Grayscale have received more than $930 million during the six-day inflow streak, following several weeks of weaker flows and uneven price action. Spot Bitcoin ETFs are closely watched because they offer a regulated brokerage-market route for exposure to Bitcoin without requiring investors to hold the asset directly, making fund flows one of the clearer public gauges of demand from U.S. market participants.
Bitcoin remains nearly 50% below its October record of $126,080. The asset has been pressured by a major liquidation event, war in the Middle East, and inflation concerns.
Analysts remain cautious on upside potential
Analysts remain cautious about the future path of digital asset prices as markets weigh a re-escalation of the Trump administration’s war with Iran and inflation risks.
European asset management firm CoinShares said last week that although investors have returned to putting fresh capital into Bitcoin through exchange-traded products, other factors could limit further gains in digital asset markets.
“We have said for some time that Bitcoin has probably reached, or is close to, its floor,” James Butterfill, head of research at CoinShares, wrote. “But we see no significant upside potential from here.”
Current macroeconomic headwinds, including the U.S. bombing Iran and rising oil prices, could push inflation higher again. Bitcoin has typically performed well on news that inflation is easing, as investors expect interest rates to decline. That makes upcoming inflation data and central bank rate expectations important context for traders assessing whether ETF demand can offset broader pressure on risk assets.
A separate NYDIG report last week said Bitcoin’s current slump is driven by supply mechanics rather than risk sentiment.
The report said Bitcoin’s year-to-date performance makes it the worst-performing asset, trailing U.S. Treasuries, silver, and currencies such as the Swiss franc.
NYDIG added that if Bitcoin’s price action were to resemble other drawdowns, including the 2022 bear market, a “potential cycle low near $38k-$39k” was possible.
