The US Spot Bitcoin ETF regained momentum on Thursday, December 26, as evidenced by the change in fund flows into the investment instrument. Fidelity’s FBTC led the inflow on Thursday, with Ark’s ARKB and BlackRock’s IBIT supporting the trend. Notably, this change in fund flows comes after the investment instruments recorded massive outflow since December 19, which has sparked concerns in the broader crypto market.
Bitcoin ETF Inflow Regains Momentum
The US Spot Bitcoin ETF has recorded a significant outflux recently, with BTC witnessing a sharp decline. This robust outflux also appeared to have weighed on the investors’ sentiment, which has further triggered the volatility in the market. However, the sentiment appeared to have changed recently, as evidenced by the recent fund flow trend.
According to Farside Investors data, the overall US Spot BTC ETFs recorded an influx of $475.2 million on Thursday. Fidelity’s FBTC led the influx trend with a $254.4 million inflow on December 26, reflecting the regaining confidence of the investors. Simultaneously, ARK’s ARKB and BlackRock’s IBIT noted inflows of $186.9 million and $56.6 million, respectively.
Meanwhile, this change in trend comes after the investment instruments went through a gloomy phase recently. For context, the BTC ETFs recorded an outflow of $1.51 billion from December 19 through December 24, which has weighed on the investors’ sentiment, especially after the robust inflow over the past few weeks.
Considering that, it appears that the institutional interest in the digital assets space is once again soaring. For context, the US Spot Ethereum ETF also recorded an inflow of $117.2 million yesterday, with Fidelity’s FETH leading with an $83 million influx.
BTC Recovery Ahead?
Bitcoin price today was down about 3% and exchanged hands at $94,975 despite the positive US Spot Bitcoin ETF inflow. Its trading volume was up about 28% and the crypto touched a 24-hour high of $97,784. Furthermore, BTC Futures Open Interest fell about 3% in the last 4-hour time-frame, reflecting the bearish trend noted in the broader market.
Meanwhile, the analysts also shared some gloomy forecasts for BTC, as it has lost its crucial support recently. Bitcoin has slipped recently due to a flurry of reasons, with top experts predicting a BTC crash to $60K ahead, which has fueled discussions in the market.
However, despite the gloomy sentiment, some market experts remained optimistic about the long-term trajectory of the flagship crypto. Despite the short-term pullback amid the holiday mood, the crypto is likely to make a strong recovery ahead, potentially hitting new highs in the coming days.
On the other hand, Bitwise has recently filed for a new BTC ETF to track companies like MicroStrategy, Metaplanet, and others. This also showcases the growing institutional confidence towards the flagship crypto. Having said that, the largest crypto by market cap is expected to rebound in the coming days, despite these short-term declines.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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