Bitcoin ETFs have drawn $510 million in net inflows over the past three trading days, a sharp shift after weeks of sustained selling pressure. The move points to a near-term rebound in institutional demand through one of Wall Street’s main crypto access vehicles.
James Butterfill, head of research at 21Shares, said the latest figures may reflect a modest improvement in sentiment after heavy withdrawals that started in early May. In his view, this is the strongest wave of buying since the May sell-off, suggesting the worst phase of the recent market weakness may have passed.
About $8 billion left Bitcoin ETFs over eight weeks
The rebound comes after a deep stretch of outflows. Over the last eight weeks, Bitcoin ETFs recorded roughly $8 billion in total net outflows. Investor caution intensified over that period, pushing year-to-date net outflows to around $2.8 billion.
Butterfill said the latest withdrawal cycle amounted to about 8% of assets managed by Bitcoin ETFs. He compared the behavior to activity seen near the bottom of the 2018 crypto cycle and noted that this year’s withdrawals were on a scale similar to February, when investors pulled $5.2 billion from the market.
Bitcoin recovered to $62,000, but many ETF buyers remain below cost
As of Wednesday, Bitcoin was trading near $62,000, up about 4% over the past week. Earlier this month, the price had fallen to roughly $58,000. The bounce has offered some relief, though it has not erased losses for many ETF investors.
According to Glassnode, the average entry price for investors in these products is around $83,800, still well above current market levels. That leaves a large portion of ETF holders underwater even after the recent price recovery.
Whale selling has eased, while Fed uncertainty stays in focus
Pressure on Bitcoin has also been tied to large-holder activity. Butterfill said wallets holding more than 1,000 BTC have collectively sold over $40 billion worth of Bitcoin since last year’s price peaks. That selling pressure, he added, appears to have eased in recent weeks.
Macro conditions remain a constraint. Butterfill warned that uncertainty around US monetary policy could still prevent a durable breakout, with the Federal Reserve maintaining a hawkish position against inflation and tensions in the Middle East affecting risk appetite. He also said it is too early to conclude that rate cuts are close, leaving Bitcoin highly sensitive to inflation data and central bank guidance.
Even so, the latest ETF drawdown did not match the most severe single-day episodes seen last year. CoinGlass data shows the largest one-day net outflow in the recent downturn reached $733 million, below the peaks recorded multiple times in 2023.