Spot Bitcoin ETFs recorded their strongest week of inflows since early October, signaling a renewed wave of institutional interest through regulated investment products. Data shows that these ETFs attracted $1.42 billion in net inflows over the past week, supported by reduced selling from large holders and signs of tightening Bitcoin supply.
Midweek activity drove most of the momentum. Wednesday alone saw approximately $844 million in net inflows, following a strong $754 million on Tuesday. Although sentiment cooled toward the end of the week, including a notable $395 million outflow on Friday, the overall weekly total still marked the best performance since early October, when inflows reached $2.7 billion.
Ether ETFs followed a similar pattern. Inflows were strongest earlier in the week, with around $290 million on Tuesday and $215 million on Wednesday. Late-week outflows, including roughly $180 million on Friday, reduced total weekly inflows to about $479 million, but interest remained clearly front-loaded.
Institutional Demand Returns as Bitcoin Supply Tightens
Market participants suggest the inflows reflect long-term investors re-entering the market after weeks of caution. According to Vincent Liu, chief investment officer at Kronos Research, ETF demand indicates that long-only institutional allocators are once again seeking exposure through compliant and regulated channels.
Liu noted that onchain data shows large Bitcoin holders, often referred to as whales, have significantly reduced net selling compared with late December. This reduction has eased a major source of selling pressure. When combined with consistent ETF buying, the available circulating supply appears to be tightening, even as price volatility remains elevated.
While these developments are encouraging, Liu emphasized that the shift is still in its early stages. Continued ETF inflows, easing whale distribution, and improving market structure suggest a more durable institutional bid could be forming beneath the market. However, confirmation will require sustained follow-through rather than isolated weeks of strong demand.
Why ETF Inflows Alone May Not Sustain Bitcoin Rallies
Despite the positive data, some analysts urge caution. According to insights from the Bitcoin macro intelligence newsletter Ecoinometrics, recent spikes in spot Bitcoin ETF inflows have historically led to short-lived price rebounds rather than sustained rallies. Prices often stabilize or rise briefly when inflows surge, only to fade once demand slows.
The newsletter argues that Bitcoin requires several consecutive weeks of strong ETF inflows to meaningfully shift the broader market trend. While positive days can help absorb selling pressure and reduce downside volatility, cumulative ETF flows remain negative overall. Without sustained institutional demand, short-term inflows may support price stability but are unlikely to drive a lasting uptrend on their own.
