ETF Flows Fuel Bitcoin Rebound as Leverage Takes Backseat

Bitcoin's recent rebound may be on firmer ground than previous crypto rallies. According to Mizuho analyst Dan Dolev, the crypto market is approaching a sustained recovery driven by institutional demand through spot ETFs, rather than leverage.

The key indicator of this shift is the sharp return of investors seeking direct Bitcoin exposure through traditional brokerage accounts. U.S. spot Bitcoin ETFs attracted roughly $1.9 billion in net inflows last week after recording five consecutive sessions of inflows. BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) led the buying.

Investors are now turning their attention to funds including IBIT, Fidelity Wise Origin Bitcoin Fund (BATS:FBTC), ARK 21Shares Bitcoin ETF (BATS:ARKB) and Bitwise Bitcoin ETF (NYSE:BITB).