ETF Inflows Signal Shift in Institutional Demand for Bitcoin
Bitcoin ETF inflows have returned to the market, but it's not just about the numbers. According to Markus Levin, co-founder of dePIN blockchain XYO, the recent flow reversal is showing a different pattern compared to earlier this month.
The U.S. spot Bitcoin ETFs recorded $998.9 million in net inflows on Monday and another $714.75 million on Tuesday, bringing their 4-day inflow streak to $2.3 billion. BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) led the inflows with $381.4 million, followed by ARK 21Shares Bitcoin ETF (BATS:ARKB) at $289.1 million and Fidelity's Wise Origin Bitcoin Fund (BATS:FBTC) at $238.8 million.
Levin emphasized that breadth matters more than the headline number. The recent inflows are broader and more widespread compared to earlier this month, when several major funds sold simultaneously. He notes that persistence is key, and several consecutive weeks of simultaneous positive flows across major Bitcoin ETFs would indicate a change in positioning.
Levin also cautioned that ETF creations cannot be treated as a one-for-one measure of fresh money entering crypto. He pointed to Bitcoin's seven-session correlation with the Nasdaq rising to 0.42, while its correlation with gold has fallen to 0.18. He believes that Bitcoin's ability to rally despite a more hawkish Federal Reserve backdrop suggests rates are no longer the only variable driving institutional demand.