Spot Bitcoin exchange-traded funds (ETFs) delivered their strongest weekly performance since October, as institutional investors returned through regulated investment vehicles. The renewed demand was supported by reduced selling from large holders and signs that Bitcoin’s effective supply is tightening.
Data from SoSoValue showed that spot Bitcoin ETFs attracted $1.42 billion in net inflows over the past week, marking the best weekly result since early October, when inflows reached $2.7 billion. Buying activity was heavily concentrated earlier in the week, with Wednesday recording the largest single-day inflow of around $844 million, following roughly $754 million on Tuesday.
Although sentiment softened later in the week — including a $395 million net outflow on Friday — the strong midweek demand was enough to push total weekly inflows to $1.42 billion, highlighting a clear rebound in institutional participation.
Ether ETFs also saw solid interest, though to a lesser extent. Inflows were front-loaded, with about $290 million added on Tuesday and approximately $215 million on Wednesday. Late-week weakness weighed on totals, with Friday seeing net outflows of around $180 million, leaving weekly inflows near $479 million.
Institutional interest returns as supply pressure eases
Vincent Liu, chief investment officer at Kronos Research, said the inflow pattern suggests that long-only institutional allocators are gradually re-entering the market after a cautious period.
Liu noted that ETF demand through regulated channels, combined with stabilisation among large Bitcoin holders, points to a tightening supply environment and a shift toward a more risk-on market backdrop. On-chain data indicates that so-called whales have reduced net selling compared with late December, easing one of the main sources of distribution pressure.
He cautioned, however, that the trend remains in its early stages rather than fully confirmed. While renewed ETF inflows, lower whale selling and improving market structure suggest a more durable institutional bid is forming, further confirmation will require consistency.
According to Liu, ETF demand is helping absorb downside moves, making pullbacks more likely to be met with buying interest, even if price action remains uneven.
ETF inflows alone may not sustain rallies
Research from the Bitcoin macro intelligence newsletter Ecoinometrics suggests that recent surges in spot Bitcoin ETF inflows have typically sparked short-lived price rebounds rather than sustained rallies. Gains have often faded once inflows slow, highlighting the need for several consecutive weeks of strong demand to shift the broader trend.
While isolated inflow spikes can help stabilise prices, analysts argue that sustained and consistent ETF buying is required to support a lasting upward move, as cumulative ETF flows remain negative over the longer term.
