U.S. spot bitcoin ETFs recorded another $155 million in net inflows on Wednesday, extending a two-week streak of institutional demand even as on-chain data suggests the market’s underlying strength remains uncertain.
Bitcoin continued to trade firmly on Thursday, hovering around $72,500 based on market data from CoinDesk. Persistent inflows into spot exchange-traded funds have helped support the cryptocurrency’s price after several weeks of relatively subdued trading activity.
The latest inflows bring total allocations into U.S.-listed spot bitcoin ETFs to about $1.47 billion over the past two weeks, according to figures compiled by SoSoValue. The rebound marks a clear shift from earlier this year when the funds experienced a series of outflows.
Institutional interest appears to be gradually recovering after a weak start to the year. Since Feb. 24, investors have channeled roughly $1.7 billion into U.S. spot bitcoin ETFs, according to data from Bloomberg Intelligence previously cited by CoinDesk. The steady inflows suggest that some investors are increasingly confident that bitcoin may have established a near-term price floor.
However, analysts at Bitfinex recently warned that ETF inflows do not necessarily translate into immediate spot market demand. Authorized participants can create and even short ETF shares before acquiring the underlying bitcoin, which may delay the impact those flows have on the asset’s market price.
Even so, bitcoin’s resilience alongside ongoing ETF demand during periods of geopolitical uncertainty is reinforcing its evolving role in the broader macro landscape, according to some industry observers.
“Bitcoin is increasingly being repriced by the market as a geopolitical hedge rather than just a risk asset,” said Livio Weng, CEO of Bitfire. “Unlike gold, bitcoin trades 24/7 and can move across borders instantly, making it an attractive channel for capital during times of geopolitical tension.”
On-chain indicators urge caution
Despite the recovery in ETF flows, blockchain data suggests that demand momentum may still be weak. In a recent report, analytics firm Glassnode noted that buy-side momentum has cooled considerably, with the 30-day moving average of realized profits dropping around 63% since early February.
The proportion of bitcoin’s circulating supply currently held in profit has also declined to roughly 57%, a level that has historically been associated with the early stages of deeper bear market conditions.
Glassnode added that the cost basis of short-term holders sits near $70,000, which could act as an important behavioral resistance level. As prices approach that threshold, traders may look to exit positions around breakeven, potentially turning upward moves into distribution phases.
