US Bitcoin Exchange-traded funds (ETFs) were on track to end five weeks of net outflows and post their strongest performance since mid-January.
The funds saw net inflows of $1.1 billion for three days in a row, and taking into account Monday’s net outflows, their net inflows were about $815 million, the highest level since a $1.4 billion increase in the week ended Jan. 16, SoSoValue data showed.
BlackRock’s iShares Bitcoin Trust (IBIT) accounted for more than half of the three-day flows, attracting approximately $652 million. On Wednesday, Grayscale’s GBTC, which has the highest fees, reported its largest single-day inflow since the trust structure was converted to an ETF.
Renewed inflows suggest U.S. demand is returning, a conclusion reinforced by the Coinbase Premium Index turning positive after 40 days of negative territory. The index tracks the price difference between Bitcoin on Coinbase (COIN), which is used by companies in the world’s largest economies, and the broader global market. It is widely used as a measure of U.S. institutional flows and sentiment.
Data from Checkonchain shows that total Bitcoin holdings in U.S. spot ETFs climbed to 1.29 million Bitcoins, with assets under management (AUM) less than 10% below the October peak.
This comes despite the fact that Bitcoin spot prices are still 45% below their October high. This week, the largest cryptocurrency continues to consolidate near the mid-$60,000 range.
Meanwhile, open interest on the Chicago Mercantile Exchange (CME) continued to decline, falling to 107,780 BTC, according to Glassnode data. Since the CME allows institutions to simultaneously hold long spot Bitcoin positions and short futures positions (a strategy known as basis trading), the decline in futures could be seen as indicating that the ETF inflows were outright long positions.
