Bitcoin ETFs Attract $221 Million, Ending 10-Day Outflow Trend

Bitcoin exchange-traded funds (ETFs) in the U.S. saw a notable inflow of $221.7 million on Thursday, marking the highest single-day intake in two months and breaking a 10-day trend of outflows.

Fidelity's Contribution Drives Inflows

The surge was primarily influenced by Fidelity’s Bitcoin ETF, which accounted for almost $166 million of the inflow. In contrast, BlackRock’s Bitcoin ETF faced a significant outflow of $40.43 million during the same period.

Prior to this inflow, the Bitcoin ETFs had experienced substantial withdrawals, totaling $2.73 billion over the previous ten days. Year-to-date, the net outflows remain concerning, amounting to about $5.4 billion. Analysts note that a consistent inflow trend is essential to validate any recovery in Bitcoin prices.

Despite this one-day rebound, the overall sentiment for the year remains cautious, as evidenced by the continued net outflows. However, this recent influx has offered a glimmer of hope for Bitcoin supporters, coinciding with a price recovery to around $61,700 after dipping to lows below $58,000 earlier this week.

For a more sustained recovery, experts suggest that ongoing inflows into Bitcoin ETFs will be crucial, as historical data links such trends to bullish market conditions.