Bitcoin ETF inflows turn positive as BTC rebounds to $65K
US-listed spot Bitcoin exchange-traded funds reported positive flow on Tuesday as Bitcoin prices staged a modest recovery toward the $65,000 level.
Spot Bitcoin ETFs recorded $257.7 million in net inflows, the largest daily total since early February, according to data from SoSoValue.
The rebound followed Monday’s outflows of $203.8 million and pushed weekly flows back into positive territory.
The reversal came after five consecutive weeks of net redemptions totalling $3.8 billion, highlighting the scale of recent investor withdrawals from crypto-linked investment products.
Bitcoin was trading near $65,554 during the session, reflecting a tentative recovery after weeks of sustained weakness.
Fidelity and BlackRock lead inflows
The recovery in ETF flows was led by major asset managers.
Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund recorded nearly $83 million in inflows, according to data from Farside Investors.
BlackRock’s iShares Bitcoin Trust followed closely, attracting about $79 million.
The strong showing from the two largest providers suggests that some institutional and retail investors are selectively re-entering the market after the recent selloff.
Cumulative net flows into spot Bitcoin ETFs remain above $54 billion, down from a peak of more than $62 billion in October 2025, indicating that a substantial portion of early investors have continued to hold their positions.
AUM remain under pressure
Despite Tuesday’s inflows, the broader picture for Bitcoin ETFs remains fragile.
Since the beginning of 2026, total assets under management in US spot Bitcoin funds have fallen by 30.5%, declining from about $117 billion to $81.3 billion.
The drop reflects both falling asset prices and persistent redemptions.
Market participants said sentiment remains subdued, with analysts estimating that roughly half of Bitcoin’s circulating supply is currently underwater.
This has been compounded by reports of heavy institutional selling during the fourth quarter of 2025.
While Tuesday’s inflows provided temporary relief, they have not yet reversed the longer-term downtrend in fund assets.
Institutional selling in late 2025
Data from the final quarter of last year continues to weigh on sentiment.
Bloomberg ETF analyst James Seyffart detailed the scale of institutional selling in an X post on Tuesday.
“What did 13F filers do with the Bitcoin ETFs in Q4?” Seyffart wrote.
“In what should not be much of a surprise, they were sellers ... overall 13F Filers sold ETF shares equivalent to ~25,000 Bitcoin in 4Q 2025.”
He said that publicly traded funds saw net sales equivalent to 25,098 BTC during the quarter, with investment advisers and hedge fund managers accounting for the largest share of holdings and selling activity.
The data reinforced concerns that institutional investors had been reducing exposure even before the latest market downturn.
Bitcoin price sees some respite
Bitcoin extended its rebound into early Wednesday, reclaiming $65,400 as external market conditions improved.
A weaker US dollar and a more risk-on tone in Asian equities helped lift sentiment.
Major cryptocurrencies tracked Bitcoin higher, with Ether rising 4.2% over the past day, Solana gaining 7%, and XRP adding 3%.
MSCI’s gauge of Asian equities rose 1.4% to a record high, led by gains in South Korea and Taiwan, where AI-linked chipmakers reached all-time highs ahead of earnings from Nvidia.
The Bloomberg Dollar Spot Index edged lower after President Donald Trump’s State of the Union address, in which he reaffirmed tariff plans despite the Supreme Court of the United States striking down his global import taxes.
Trump also suggested that tariffs could eventually replace the income tax system, adding to currency market volatility.
Historically, a weaker dollar has tended to support Bitcoin prices, although the relationship has been inconsistent during the current downturn.
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