According to CoinDesk: Bitcoin exchange-traded funds (ETFs) attracted net inflows of $1.08 billion over three days, indicating improved institutional demand for the cryptocurrency. However, these inflows have not yet reached the levels seen during previous sharp upward surges, raising questions about their ability to support a strong and sustained price rise, according to data analyzed by CoinDesk.
Vikram Subraj, CEO of India's Jyotus, said institutional demand is showing initial improvement, but flows remain volatile, noting that a sustained strong pace is necessary to confirm a more robust recovery in the Bitcoin market.
Historical data shows that sharp currency upswings have been associated with average daily net inflows of more than $200 million into exchange-traded funds.
Since the launch of these funds in January 2024, Bitcoin has experienced three sharp upward waves, during which its price rose by more than 50% without falling back by more than 20% from the highest level it recorded during each wave.
During the first wave, which lasted from January 23 to March 14, 2024, the price of Bitcoin rose by 79%, from approximately $39,900 to $71,400. Average net inflows into funds reached $294 million daily, with inflows of $500 million or more recorded over 10 days, and exceeding $1 billion in a single day.
The second wave, which lasted from August 5 to December 17, 2024, saw Bitcoin's price rise by 96%, from approximately $54,100 to $106,100. Average daily net inflows reached $202 million, exceeding $500 million over 16 days and surpassing $1 billion in three days.
These data indicate that strong institutional flows coincided with previous upward waves, but their continuation alone does not guarantee a repeat of those gains, as confirming the recovery requires monitoring the sustainability of demand and market developments.
