Bitcoin ETFs returned to positive daily inflows on Monday, October 26, attracting approximately $110 million in fresh investment after experiencing substantial withdrawals during the previous two trading sessions.
However, the recovery was insufficient to reverse the broader monthly decline. US spot Bitcoin exchange-traded funds remained in negative territory for October, reflecting continued investor caution amid cryptocurrency market volatility.
According to data from SoSoValue, the funds had accumulated approximately $202 million in net outflows for October, despite the latest rebound.
Bitcoin ETF Inflows Rebound After $774 Million Selloff
US-listed spot Bitcoin ETFs recorded $110 million in net inflows on Monday, marking a reversal following two consecutive trading sessions of heavy withdrawals.
During those previous sessions, investors pulled approximately $774 million from the funds, highlighting weakening demand for Bitcoin investment products.
Although Monday’s inflows represented an encouraging development, they recovered only a fraction of the earlier losses.
Furthermore, cumulative October flows remained negative at approximately $202 million through October 26.
The figures suggest that institutional and other ETF investors remain cautious despite renewed buying activity.
Bitcoin Price Falls Below $80,000 as Market Sentiment Weakens
Bitcoin continued to face selling pressure even as spot ETFs returned to positive daily flows.
At the time of the report, Bitcoin was trading around $79,595, according to CoinGecko.
The cryptocurrency had declined approximately 2.6% over the previous seven days, reflecting persistent uncertainty across the digital asset market.
Meanwhile, the Crypto Fear & Greed Index dropped to 48 from 50 during the previous session.
Despite the decline, the indicator remained within the Neutral category, suggesting that overall investor sentiment had not yet shifted into extreme fear.
Nevertheless, the combination of falling Bitcoin prices and negative monthly ETF flows indicates a cautious trading environment.
Retail Bitcoin Investors Increase Binance Deposits
Separate blockchain data from CryptoQuant revealed a notable shift in Bitcoin exchange activity.
According to CryptoQuant analyst Darkfost, retail investors have significantly increased their Bitcoin deposits to Binance, one of the world’s largest cryptocurrency exchanges.
Over the past 30 days, the value of Bitcoin transferred to Binance by smaller investors nearly doubled, reaching approximately $10.8 billion.
In contrast, deposits from larger Bitcoin holders declined to around $3.8 billion during the same period.
This divergence suggests that smaller investors have become more active in transferring their holdings to exchanges while larger participants have reduced their deposit activity.
Darkfost suggested that some retail investors could be taking advantage of recent Bitcoin price recoveries to sell their holdings.
However, increased exchange deposits do not necessarily confirm selling, as investors may transfer cryptocurrencies for several reasons.
Bitcoin ETF Outlook Remains Uncertain Despite Inflow Recovery
The return of positive Bitcoin ETF inflows offers a potential sign of renewed investor interest following recent withdrawals.
However, the broader market continues to face several challenges.
Bitcoin remains below the psychologically important $80,000 level, while cumulative ETF flows for October are still negative.
Additionally, increasing retail deposits to Binance may indicate that some investors are preparing to reduce their exposure during price recoveries.
Market participants will now monitor whether daily ETF inflows can continue and eventually reverse October’s net withdrawals.
A sustained improvement in Bitcoin ETF demand, combined with stabilizing prices and stronger investor sentiment, could help support a broader cryptocurrency market recovery.
For now, the latest figures highlight a market attempting to regain momentum after a period of significant selling pressure.
