Institutional Investors Flock Back to Bitcoin ETFs as Price Rebounds

Bitcoin ETF inflows rebounded in style on Thursday, snapping a ten-day losing streak that had drained over $2.7 billion from the space.

The US spot Bitcoin ETFs recorded a net inflow of $221.7 million, marking the first daily figure above $200 million since early May and ending a brutal stretch that had left many wondering if institutional investors were losing confidence in the asset class.

Fidelity's Wise Origin Bitcoin Fund was the standout performer, capturing $166 million in net inflows, approximately 75% of the entire day's total across all US spot Bitcoin ETFs. This concentration suggests that much of the reinvestment flowed toward a specific product rather than dispersing evenly, potentially reflecting institutional preferences or portfolio rebalancing toward Fidelity's offering.

Despite this positive development, overall crypto market sentiment remained weak, with the Fear & Greed Index sitting at 'extreme fear' on Friday. This indicates that investor confidence has not yet meaningfully recovered even as institutional fund flows turned positive.