Key Points
- Spot Bitcoin ETFs recorded net inflows, ending a prolonged period of withdrawals.
- Improving liquidity conditions supported renewed interest across multiple crypto funds.
Spot Bitcoin ETFs returned to net inflows after seven consecutive trading days of withdrawals, bringing fresh momentum to the market.
The funds collectively attracted $355 million as trading activity increased and liquidity conditions began to stabilize.
Spot Bitcoin ETFs Reverse Outflow Trend
US-listed spot Bitcoin ETFs reversed a week-long outflow streak that previously saw $1.12 billion exit the products, according to data from Farside Investors.
The shift followed a period of subdued prices and low volumes that had kept many participants on the sidelines.
BlackRock’s iShares Bitcoin Trust led inflows with $143.75 million, followed by Ark 21Shares with $109.56 million and Fidelity’s Wise Origin Bitcoin Fund with $78.59 million.
Additional inflows were reported by Bitwise, Grayscale’s Bitcoin Trust, and VanEck’s Bitcoin ETF, though at smaller levels.
December 26 marked the heaviest single-day outflow, with nearly $276 million withdrawn amid late-week selling pressure.
Despite the recent rebound, total December outflows still stood at $744 million as traders reduced exposure during the year-end slowdown.
Liquidity Signals Support Broader Crypto Funds
Market observers attributed the renewed inflows to improving global liquidity conditions, which are often associated with stronger demand for risk assets.
Arthur Hayes noted that dollar liquidity likely bottomed in November and has gradually improved since then, a trend that can influence digital asset markets.
Easing financial conditions were also reflected in expanding money supply measures across major economies and upcoming US Treasury bill purchases.
The Federal Reserve is expected to inject more than $8 billion into markets, potentially adding further support to asset prices.
The improved sentiment extended beyond Bitcoin, as spot Ethereum (ETH) ETFs ended a four-day outflow streak with $67.8 million in net inflows.
Meanwhile, spot XRP ETFs continued to see steady demand, extending their inflow streak to 30 days with an additional $15 million added.
