U.S. spot Bitcoin exchange-traded funds reversed sharply into strong inflows this week, swinging from a $1.3 billion outflow to a $1.7 billion inflow.
The 227% reversal signals renewed institutional accumulation despite Bitcoin's price consolidation in the low-$90,000s, according to Glassnode data released Monday.
Weekly trading volume in U.S.-listed spot Bitcoin ETFs surged from $16.8 billion to $21.8 billion, exceeding statistical norms and reflecting heightened investor engagement.
The flow reversal comes as Bitcoin pulled back from recent highs near $98,000, currently trading around $92,500 after retreating from its early January peak.
Market Dynamics and Performance
Spot market conditions showed early signs of improvement alongside the ETF flow reversal.
The net buy-sell imbalance broke above its upper statistical band, signaling a clear reduction in sell-side pressure, while trading volume lifted modestly from $8.8 billion to $9.3 billion.
Bitcoin's 14-day relative strength index cooled from 63.6 to 61.0, suggesting consolidation rather than trend deterioration.
Futures positioning remained mixed, with open interest edging higher to $31.5 billion while funding rates cooled sharply to $600,000, indicating reduced long-side urgency.
Options markets continued pricing elevated uncertainty, with open interest rising from $30.0 billion to $32.9 billion and the volatility spread sitting near the upper end of its historical range.
Significance of the Flow Reversal
The dramatic ETF flow reversal represents a significant shift in institutional sentiment after weeks of uncertainty around cryptocurrency markets.
The U.S. spot ETF market-to-realized-value ratio edged up to 1.71, placing most ETF holders in profit territory and introducing potential near-term profit-taking risk.
On-chain activity is stabilizing, with active addresses rising 3.8% to 656,294 and transfer volume increasing 3.9% to $8.6 billion, while network fees climbed 13.2% to $241,100.
The combination of strengthening buy-side dynamics and renewed institutional interest suggests markets are gradually rebuilding toward a more constructive structure, despite persistent defensive positioning in derivatives markets.