Institutional Investors Flock to Bitcoin ETFs, But Can They Reclaim $87K?
Bitcoin's recent pullback from $87K has not deterred institutional investors, as evidenced by six consecutive sessions of net inflows into BTC Spot ETFs. BlackRock's IBIT is leading the charge, accumulating 1.97K BTC worth $166 million from Coinbase Prime.
The continued influx of funds into these ETFs suggests that institutions are taking advantage of dips to buy. This renewed demand has pulled a significant share of supply off exchanges, with Exchange Netflow remaining negative for four consecutive days.
Historically, periods of strong net inflows have preceded better price performances on Bitcoin's charts. However, one major hurdle remains: US institutional investors are still selling, with the Coinbase Premium Index holding negative for three consecutive days.
The transition into a bullish phase will require both ETFs to record net inflows and the Coinbase Premium index to turn positive. Until then, Bitcoin's price will continue to fluctuate, making it difficult to predict whether it can reclaim $87K or extend its rally.