Recent data indicates a notable turnaround for U.S. Bitcoin exchange-traded funds (ETFs), with these financial instruments attracting significant investment within a short timeframe. Over a three-day period, they witnessed net inflows totaling $1.1 billion, marking their strongest performance since January of this year.
Strong Inflows and Leading Funds
According to SoSoValue, this surge in investment allows the funds to emerge from five consecutive weeks of net outflows. After accounting for Monday’s net outflow, U.S. Bitcoin ETFs are approximately $815 million ahead. This influx comes after a previous gain of $1.4 billion during the week ending January 16.
- iShares Bitcoin Trust (IBIT): Contributed over 50% of the three-day inflow with approximately $652 million.
- Grayscale Bitcoin Trust (GBTC):
- Recorded its largest single-day inflow since converting to an ETF structure.
Indicators of Market Sentiment
These renewed inflows suggest a resurgence in U.S. demand for Bitcoin. One strong indicator of this trend is the Coinbase Premium Index, which has turned positive after a prolonged period of 40 days in negative territory. This index measures the price fluctuation of Bitcoin on Coinbase relative to the global market, serving as a valuable metric for evaluating U.S. institutional sentiment.
Bitcoin Holdings and Market Status
As of now, total Bitcoin holdings across U.S. spot ETFs have reached 1.29 million BTC. This figure leaves the assets under management (AUM) less than 10% below their peak in October. However, it’s pertinent to note that the current spot price for Bitcoin remains 45% lower than its record high from October.
Throughout the week, Bitcoin has shown stability, remaining centered around the mid-$60,000 range. In contrast, open interest on the Chicago Mercantile Exchange (CME) has gradually diminished, now at 107,780 BTC according to Glassnode data. This decline indicates that many positions taken may be long-term, as CME allows institutions to balance long positions in spot Bitcoin with short positions in futures, a strategy known as basis trading.
