Bitcoin, Ethereum ETFs extend inflow streak as institutional demand returns

Institutional capital returned to US spot Bitcoin exchange-traded funds at the start of the week, extending a broader recovery in crypto investment flows after weeks of sustained withdrawals.

Data from SoSoValue shows that spot Bitcoin ETFs recorded $458.2 million in net inflows on Monday, with $263.2 million directed into BlackRock’s IBIT. 

Products from Fidelity and Grayscale were among seven additional funds that registered positive flows, and no ETF reported outflows on the day. 

The latest figure builds on last week’s $787.3 million in net inflows into US spot Bitcoin ETFs, which brought an end to a five-week stretch that had seen more than $3.8 billion exit the segment.

According to a March 2 CoinShares report, digital asset ETPs attracted $1 billion in inflows last week, with $882 million allocated to Bitcoin strategies. 

James Butterfill, the firm’s head of research, said it was difficult to attribute the change in sentiment to a single macro catalyst. 

He pointed instead to the combination of earlier price weakness, technical breaks below key levels, and renewed accumulation by large Bitcoin holders. 

“At a more anecdotal level, recent client discussions have been almost entirely focused on identifying entry points rather than reducing exposure to the asset class,” Buterfill added.

Demand trickles beyond Bitcoin

Fresh inflows into Bitcoin funds were also being matched by renewed interest in crypto ETPs across other markets.

On Monday, spot Ethereum ETFs recorded $38.7 million in net inflows, while Solana products drew $17.4 million and XRP funds added roughly $7 million. 

Over the past week, Ether-based ETPs absorbed $117 million and Solana $54 million, with smaller allocations of $3.4 million into Chainlink and $2 million into XRP.

Even with the recent pickup, year-to-date figures remain mixed.

Bitcoin and Ether ETPs continue to show net outflows of $408 million and $430 million, respectively. 

By contrast, Solana and XRP products have posted net inflows of $156 million and $153 million so far this year, reflecting more selective positioning within the asset class.

Bitcoin fails to break $70,000

The renewed appetite for risk has emerged against a backdrop of heightened geopolitical instability.

As a result, it has failed to garner the momentum necessary to help bulls reclaim a key support level.

Persistent tensions between the United States and Iran intensified after joint US and Israeli strikes that killed Iran’s supreme leader, Ayatollah Ali Khamenei.

Bitcoin, in the meantime, attempted a breakout above $70,000 as US markets opened on Monday.

However, the rally lost steam near the $69,500 resistance mark, as the risk-off sentiment triggered by Middle Eastern volatility forced a retreat.