U.S. spot Bitcoin ETFs recorded $524M in cumulative net inflows on Tuesday, marking the highest daily amount since Oct. 7, according to data from Farside Investors. The surge represents the strongest performance since the crypto market crash on Oct. 10, which significantly impacted investor sentiment.
The positive inflows signal a potential return of risk appetite among Bitcoin holders. Ki Young Ju, founder and CEO of crypto analytics platform CryptoQuant, noted that investments from ETFs and Michael Saylor's Strategy were the two main vehicles driving demand for Bitcoin's price this year.
Market Context and Influences
The growing demand from ETF buyers came a day after the U.S. Senate approved a funding package that brought Congress one step closer to ending the government shutdown. The legislation is now headed for a full vote in the House of Representatives, which may occur later today, according to a Tuesday report by CBS News.
Smart money traders, tracked on Nansen's blockchain intelligence platform, have added over $8.5M worth of net long Bitcoin positions over the past 24 hours, signaling growing optimism. However, smart traders were still net short by $202M on decentralized exchange Hyperliquid, according to Nansen data.
Analyst Outlook and Future Indicators
Despite retail concerns over the end of the bull cycle, Bitcoin's current correction remains in a healthy range, helping reset leverage and paving the way for renewed institutional entry, according to Lacie Zhang, research analyst at Bitget Wallet. She noted that all eyes turn to the Nov. 13 CPI print, though a continued data delay from the government shutdown adds uncertainty.
Cooling inflation data may ease geopolitical concerns and lead to a liquidity-driven rebound for the world's largest cryptocurrency, the analyst added. Meanwhile, sustained inflows from Bitcoin ETFs may signal that the de-risking phase of ETF holders is coming to an end, as investor demand for digital assets is returning after the crash.
ETF Performance Overview
Bitcoin ETFs have been mostly in the red since the October crash, with daily outflows reaching up to $700M, which pointed to a broader de-risking phase among ETF investors, according to crypto data platform Glassnode. As for other crypto ETFs, Ethereum ETFs saw $107M worth of outflows on Tuesday, while Solana ETFs extended their 11-day winning streak with $8M worth of net positive inflows, according to Farside Investors.