Spot Bitcoin ETFs See Fresh Inflows as Liquidity Improves

Spot Bitcoin ETFs returned to net inflows after a long week of losses. These funds raked in $355 million as market activity picked up, and liquidity conditions showed early signs of improvement.

The inflow ended 7 straight trading days of withdrawals and slowed a trend that had weighed on sentiment through most of December.

Spot Bitcoin ETFs Break Seven Day Outflow Streak

US-listed spot Bitcoin ETFs have now reversed a seven-day outflow stretch that saw $1.12 billion leave the funds, per Farside Investors data.

The turnaround followed a period of weak prices and low trading volumes, which had pushed many investors to the sidelines.

BlackRock’s iShares Bitcoin Trust led the rebound with $143.75 million in inflows. The Ark 21Shares Bitcoin ETF followed with $109.56 million, while Fidelity’s Wise Origin Bitcoin Fund added $78.59 million.

Bitwise recorded $13.87 million, while smaller additions came from Grayscale’s Bitcoin Trust and VanEck’s Bitcoin ETF.

The recovery came after heavy selling late last week. December 26 marked the largest single day of withdrawals, with close to $276 million leaving the products.

December has remained challenging overall, with total outflows for the month reaching $744 million as traders reduced exposure during the year-end slowdown.

While prices have yet to make a strong move higher, the return of inflows suggests some investors are slowly rebuilding positions rather than exiting the market completely.

A similar trend is seen in corporate buying, with Metaplanet adding $451 million worth of Bitcoin BTC $87 651 24h volatility: 1.3% Market cap: $1.75 T Vol. 24h: $36.09 B in the fourth quarter, according to CEO Simon Gerovich.

Liquidity Outlook Lifts Sentiment Across Crypto Funds

Market watchers linked the shift in Spot Bitcoin ETFs flow to changes in global liquidity. In a recent post, Arthur Hayes said dollar liquidity likely reached its lowest point in November and has been improving since then.

He added that rising liquidity often supports risk assets, including digital assets.

Other market watchers pointed to rising money supply measures across major economies as a sign that financial conditions are easing.

Attention has also turned to upcoming US Treasury bill purchases, with the Federal Reserve set to inject over $8 billion into markets, adding further support.

Nevertheless, the improved tone extended beyond Bitcoin products. Spot Ethereum ETFs also ended a four-day run of outflows.

These products recorded $67.8 million in net inflows after losing more than $196 million earlier in the week. The largest Ether ETF sell-off occurred on December 23.

Meanwhile, spot XRP ETFs continued to attract steady demand, extending their inflow streak to 30 days with an additional $15 million added.

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