Spot Bitcoin ETFs Draw $1B in Three Days as Institutions ‘Buy the Dip’
US-listed spot Bitcoin ETFs saw roughly $1.02 billion of net inflows over three trading days (Tuesday–Thursday) as investors bought during Bitcoin’s ~50% drawdown from its October peak. Mid-week flows were concentrated: $506.5 million on Wednesday and $275.8 million into BlackRock’s IBIT on Thursday. Fidelity’s FBTC and Ark 21Shares’ ARKB had outflows in the latest tranche while Bitwise’s BITB and Grayscale’s BTC posted gains. Over the broader period, spot BTC ETFs have seen significant cumulative inflows year-to-date (about $55 billion) despite approximately $6.5 billion of outflows since early October. Complementary moves included roughly $173 million into spot Ether ETFs, $35 million into Solana funds and $7 million into XRP ETFs across the same window. Analysts say renewed ETF inflows signal selective institutional re-entry and may reduce selling pressure, offering near-term support to BTC prices; however, narrowing ETF–futures spreads, reduced arbitrage returns and macro sensitivity mean the recovery could remain fragile rather than a decisive V-shaped rally. For traders: monitor weekly ETF flows and leading issuers (BlackRock, Fidelity, Bitwise, Grayscale) as a sentiment indicator—large inflows into dominant funds can improve liquidity and provide short-term price support, but keep an eye on spread dynamics and macro events that can quickly reverse flows.
Bullish
Net inflows into US-listed spot Bitcoin ETFs—especially concentrated into large issuers like BlackRock—represent renewed institutional buying that can provide direct buying pressure and improved liquidity for BTC products. Historically, sustained ETF inflows have offered price support during drawdowns by absorbing supply from retail and short-term holders. The sizeable three-day inflows (and larger year-to-date inflows) reduce near-term downside risk and raise the probability of stabilization or modest recovery. However, the bullish impact is tempered by several caveats noted in the reports: ETF–futures spread compression has reduced arbitrage profits, which previously encouraged market-making and liquidity; flows remain selective (some large funds still saw outflows); and macro events can quickly reverse risk sentiment. Therefore, the expected price effect is bullish in the short to medium term as long as inflows persist, but fragile—traders should watch weekly flow trends, spread dynamics between spot ETFs and futures, and macro catalysts for signs of sustainability or reversion.