As the Bitcoin market continues its search for direction, the performance of spot Bitcoin ETFs traded in the US is becoming an increasingly important indicator for investors. These products, seen as gateways for institutional investors into the market, provide strong signals regarding Bitcoin’s short and medium-term direction, especially with liquidity flows. During this sensitive period when Bitcoin is trapped in the $90,000 to $100,000 range, ETF movements can determine the fate of its price.
Why Are ETF Flows So Important for Bitcoin?
Recent data reveals an inconsistent pattern concerning the money entering and exiting the market through ETFs. On January 16, there was a net outflow of approximately $394 million from US spot Bitcoin ETFs, following a net inflow exceeding $100 million the previous day. Despite high daily fluctuations, the weekly cumulative inflows reaching $1.4 billion highlight the strong positions being taken by both buyers and sellers in the market.
An analysis by CryptoQuant goes beyond the headline figures, focusing on Fidelity’s FBTC and Ark Invest’s ARKB. According to the report, these two ETFs show a stronger correlation with Bitcoin prices than other products. The cumulative flows in these funds offer a clearer window into understanding Bitcoin’s real demand structure. Therefore, for investors interested in analyzing medium and long-term trends rather than short-term price volatility, FBTC and ARKB data are of critical importance.
Is Institutional Momentum Weakening?
The liquidity trends in FBTC and ARKB indicate that the groundwork for a strong and sustained rise in Bitcoin has not yet been established. While FBTC has not reached a new peak since March 2025, ARKB has been trending downward since July. This situation shows that institutional capital inflows have noticeably slowed compared to previous rally periods.
It is known that Bitcoin has shown similar movements with these ETFs in the past. The report highlights the relationship between Strategy stock (MSTR) and Bitcoin in 2024. After MSTR peaked, it was unable to create new highs and entered a prolonged downtrend. Bitcoin following a similar path highlighted the importance of liquidity signals once again. The ongoing outflows from ETFs today are considered to potentially exert additional pressure on Bitcoin.
At this point, BlackRock’s IBIT product stands out. As the largest spot Bitcoin ETF with approximately $74.5 billion in assets, IBIT conducts a significant portion of its transactions through over-the-counter markets. Therefore, while its direct impact on the spot price is limited, it assumes a balancing role during sharp downturns. However, the recent beginning of outflows from IBIT also indicates that the general institutional slowdown is affecting this fund.
On the other hand, another market development is the postponement of US Federal Reserve rate cut expectations, which is exerting pressure on risk assets. This situation is evaluated as an additional signal that institutional appetite for cryptocurrencies may remain limited in the short term.