Spot Bitcoin exchange-traded funds (ETFs) traded in the US had their strongest week since October. According to SoSoValue data, spot Bitcoin ETFs saw a net inflow of $1.42 billion in the week ending January 16th. This figure marks the highest weekly total since the week of October 10th.
The majority of the inflows came from BlackRock’s IBIT fund. IBIT topped the list with a net inflow of $1.03 billion that week. Nick Ruck, Director of LVRG Research, said this development showed that “institutional demand is reviving and Bitcoin is seen as a long-term asset class despite short-term volatility.”
ETF inflows coincided with Bitcoin’s price surge throughout the week, rising from around $90,500 to levels around $97,000. However, towards the end of the week, Bitcoin retreated following news of tensions between the US and the EU over Greenland. On Sunday, the price fell by 2.6% in 24 hours to $92,618.
Ruck stated that strong ETF inflows indicate continued accumulation in the new year, and a potential supply squeeze could support the recovery. Vincent Liu, CIO of Kronos Research, emphasized that the pullback stemmed from forced liquidations triggered by the unwinding of highly leveraged positions. According to Coinglass data, a total of $824 million in liquidations occurred in the crypto market in the last 24 hours.
On the other hand, spot Ethereum ETFs also saw inflows of $479 million last week, reaching their highest weekly level since October. Experts say that structural support remains strong, but in the short term, prices will continue to be sensitive to leverage and liquidity dynamics.
*This is not investment advice.
