Spot Bitcoin ETFs traded in the US returned to positive territory on Tuesday, recording net inflows of $477.2 million. This recovery, following recent volatility, signals a renewed surge in institutional investor confidence.
“Yesterday’s net inflows suggest that institutional investors are repositioning despite recent volatility, strengthening crypto’s portfolio diversification role amidst economic uncertainty,” said Nick Ruck, Director of LVRG Research.
ETF Performance and Trading Volume
According to SoSoValue data, 9 of 12 spot Bitcoin ETFs reported net inflows. BlackRock's IBIT fund saw $210.9 million, Ark & 21Shares' ARKB fund saw $162.8 million, and Fidelity's FBTC fund saw $34.15 million.
On the same day, spot Ethereum ETFs also saw net inflows of $141.6 million, with the highest inflow being into Fidelity’s FETH fund ($59 million).
In recent weeks, over $1 billion has flowed out of spot crypto ETFs due to trade tensions between the US and China. However, on Tuesday, Bitcoin ETFs recorded a total trading volume of $7.41 billion, which is in line with strong trading volumes in the $5-9.7 billion range in October.
Ruck stated that rising trading volumes indicate growing institutional participation, saying, “The volume increase seen in the last month represents a new momentum in institutional interest in digital assets. This, in turn, deepens liquidity and increases risk appetite.”
Shifting Investor Sentiment: Gold vs. Crypto
Emphasizing that demand for gold has weakened, Ruck stated that investors may now turn to crypto assets that offer a better risk-return ratio.
Indeed, the spot gold price fell 5.9 percent on Tuesday, its steepest daily loss since 2020. Analysts are predicting an “aggressive recovery rally” in Bitcoin following this decline.