As we enter 2026, the United States is witnessing a surge in institutional appetite for spot Bitcoin ETFs, marked by robust capital inflows. The figures recorded in the third week of January indicate a significant shift for historically cautious investors. Though price volatility has been evident, the consistent flow of funds underscores a sustained long-term positioning. Market participants interpret this scenario as a tightening on the supply side and leverage-induced short-term volatility.
Institutional Demand for Spot Bitcoin ETFs Intensifies
Last week, spot Bitcoin ETFs in the United States recorded a net inflow of $1.42 billion. This figure represents the highest weekly level since the first week of October, highlighting the renewed draw of institutional capital at the year’s onset. The lion’s share of the weekly inflows was concentrated in BlackRock’s IBIT fund, with a net influx of $1.03 billion by January 16. According to SoSoValue data, other products also experienced consistent albeit modest inflows, marking the first significant rise in weekly totals since mid-October.
As fund flows accelerated, Bitcoin’s price rose from approximately $90,500 to $97,000 during the week. Market commentators emphasize that these simultaneous inflows and price increases highlight an emphasis on long-term asset allocation, irrespective of short-term fluctuations.
Leverage Pressure Increases as Prices Recede
Towards the weekend, a risk aversion trend took hold, influenced by geopolitical headlines, causing a sharp Bitcoin price retreat. In the wake of heightened tensions between the US and the EU over Greenland, the leading cryptocurrency dropped by 2.6% within 24 hours on Sunday, receding to $92,618.
Experts suggest this price downturn stemmed from the unwinding of highly leveraged long positions in futures markets rather than the capital entering ETFs. The correction, which began in a thin liquidity environment, triggered forced liquidations, deepening the selling pressure swiftly.
In the past 24 hours, the total liquidation amount in the cryptocurrency market reached approximately $824 million. Coinglass data indicates that $763.7 million of these liquidations were from long positions. In the same period, spot Ethereum ETFs also recorded $479 million in weekly inflows, marking their strongest performance since October.