Bitcoin ETFs Log $1B Inflows During 50% Drawdown

Spot Bitcoin exchange-traded funds pulled in more than $1 billion of net inflows over three trading sessions this week, a reversal that came even as Bitcoin remained sharply below its peak.

US-listed Bitcoin (BTC) logged a combined $1.02 billion in inflows from Tuesday to Thursday, according to data from SoSoValue. The funds pulled in $506.51 million on Wednesday, the largest single-day total during the three days.

On Friday, ETF analyst Nate Geraci said in a post on X that investors appear to be “buying the dip” despite the recent downturn.

He said spot Bitcoin ETFs have seen roughly $6.5 billion in outflows since Bitcoin’s record high in early October, a figure he described as modest relative to the approximately $55 billion the category has absorbed since January 2024.

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“50% drawdowns are walk in the park for long-time BTC investors,” Geraci wrote. “But appears newer ETF investors aren’t worried either.”

Flows reverse multi-week outflow streak

This week’s inflows follow five consecutive weeks of net withdrawals, with the last two weeks of January recording a combined $2.82 billion in outflows.

The rebound was led by BlackRock’s iShares Bitcoin Trust (IBIT), which logged $275.82 million in net inflows on Thursday alone. Fidelity’s FBTC and Ark 21Shares’ ARKB posted outflows, but were outweighed by gains in other funds like Bitwise’s BITB and Grayscale’s BTC.

Altcoin ETFs have also turned positive in recent trading sessions. Spot Ether (ETH) ETFs added about $173 million over the same three-day period, while Solana funds logged roughly $35 million in inflows. Meanwhile, XRP (XRP) ETFs logged a modest $7 million in inflows. 

Related: Bitcoin bear market not over as BTC fails to reclaim $68K trend line

Analysts flag ETF flows as sentiment gauge

The inflows come as market participants discuss whether the recent selling pressure is easing. On Friday, several analysts said Bitcoin’s roughly 50% drawdown may be approaching exhaustion. 

CoinEx chief analyst Jeff Ko previously told Cointelegraph that improvements in spot ETF inflows suggest aggressive selling pressure may be fading. However, he said a sudden V-shaped recovery is unlikely after a steep decline. 

Bitrue research lead Andri Fauzan Adziima similarly pointed to oversold technical indicators and said sustained ETF inflows could serve as a catalyst for stabilization.