Key Takeaways
- Trend Reversal: U.S. spot Bitcoin ETFs halted a 7-day, $1.12 billion outflow streak with a significant $355 million net inflow.
- Top Performers: BlackRock's IBIT led the charge with $143.75 million, followed by Ark 21Shares' ARKB and Fidelity's FBTC.
- Broader Context: Analysts link the shift to improving global dollar liquidity, suggesting a potential bullish cycle for crypto assets.
- Altcoin ETFs Follow Suit: Spot Ether ETFs also saw inflows, while XRP ETFs extended their inflow streak to 30 consecutive days.
A Welcome Rebound for Digital Asset Funds
The U.S. spot Bitcoin exchange-traded fund (ETF) market experienced a decisive shift in sentiment, recording a net inflow of $355 million. This positive movement ended a challenging seven-day period that saw a cumulative $1.12 billion exit these popular investment products. The heaviest single-day outflow during that streak was approximately $275.9 million.
Leaders of the Recovery
Data from SoSoValue reveals which funds drove the turnaround. The inflow was spearheaded by industry giants:
- BlackRock iShares Bitcoin Trust (IBIT): $143.75 million
- Ark 21Shares Bitcoin ETF (ARKB): $109.56 million
- Fidelity Wise Origin Bitcoin Fund (FBTC): $78.59 million
Other notable contributions came from Bitwise's BITB ($13.87M), while Grayscale's GBTC and VanEck's HODL recorded smaller inflows of $4.28 million and $4.98 million, respectively.
The Liquidity Factor: A Macroeconomic Tailwind
Analysts point to changing global liquidity conditions as a key catalyst for the flow reversal. In a recent social media post, prominent figure Arthur Hayes suggested that global dollar liquidity likely found its bottom in November and has been gradually increasing since.
"$ liq likely bottomed in Nov and is inching higher," Hayes wrote, indicating that this setup is favorable for a renewed upward move in cryptocurrency markets.
This perspective is supported by other market observers. Crypto commentator Mister Crypto noted that global liquidity indicators are "going vertical," referencing rising money supply measures across major economies. The analyst also highlighted forthcoming U.S. Treasury bill purchases by the Federal Reserve as an additional liquidity injection.
Ether and XRP ETFs Show Strength
The positive momentum wasn't confined to Bitcoin. The spot Ether (ETH) ETF market also snapped a four-day outflow streak, attracting $67.8 million in net inflows. This marks a recovery after over $196 million exited these funds in the prior four sessions.
Meanwhile, spot XRP (XRP) ETFs demonstrated remarkable consistency, extending their inflow streak to 30 consecutive days with an additional $15 million on Tuesday.
This collective activity suggests a broadening of investor interest beyond Bitcoin and may signal growing confidence in the digital asset ecosystem as liquidity conditions improve. The data underscores the dynamic nature of crypto ETF flows, which remain sensitive to both macroeconomic trends and underlying asset performance.
