Bitcoin ETFs attract new money as traders seize buying opportunities

U.S. spot bitcoin ETFs attracted a wave of fresh capital on Monday, helping calm fears of a broader market rout after bitcoin fell below $75,000 over the weekend.

The 11 ETFs logged combined net inflows of $561.8 million — their strongest single day since Jan. 14 — according to data from Farside Investors, underscoring continued institutional interest despite recent price volatility.

BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the buying, pulling in $142 million and $153.3 million, respectively. The inflows followed a sharp weekend selloff that pushed bitcoin to nine-month lows and sparked concerns of disorderly trading at the start of the week.

Those concerns eased as markets steadied on Monday. The renewed demand also ended a nearly 10-day run of outflows, during which investors withdrew millions as bitcoin slid from roughly $98,000 to below $75,000.

A notable divergence persists between bitcoin’s price action and ETF holdings. Spot bitcoin remains about 40% below its October all-time high, yet spot bitcoin ETFs collectively hold around 1.3 million BTC in assets under management — just 5% below their October peak of 1.37 million BTC, according to Checkonchain.

Still, many ETF investors are underwater. The average cost basis across U.S. bitcoin ETFs is estimated at about $84,099, while spot bitcoin is trading near $78,000.

Bitcoin has dipped below ETF cost bases before, particularly in the second half of 2024, making the current pullback a key test of investor conviction. Should holders capitulate, redemptions could add to bearish pressure, while sustained inflows would suggest confidence in bitcoin’s longer-term prospects.