Bitcoin exchange-traded funds (ETFs) saw another recovery on Monday amid a complex market environment for BTC and broader digital assets.
Spot Bitcoin (BTC) ETFs attracted approximately $562 million in inflows, breaking a four-day streak of outflows. $1.5 billion worth of outflows were recorded last week According to to SoSoValue data.
Despite the rally, analysts warn that ETFs and broader markets are likely to face continued pressure from institutional selling and macroeconomic uncertainty, with near-term support likely to persist around the ETF’s $84,000 base cost level.
The inflow of funds came as Bitcoin rebounded on Monday after briefly dropping below $75,000 over the weekend before hitting an intraday high above $79,000. According to this CoinGecko.
Bitcoin ETF with $1 billion in year-to-date outflows
The $562 million in fresh inflows represent a significant portion of year-to-date outflows from spot Bitcoin ETFs, which totaled $1 billion as of Tuesday.
Total outflows reached $4.6 billion this year, offsetting inflows of $3.6 billion, according to SoSoValue data.
Meanwhile, Ether ETFs (ETH) failed to achieve any inflows on Monday, appointment tiny outflows of $2.9 million.
The cost basis of ETF flow is currently in question, says Galaxy Digital’s Alex Thorn
In addition to the outflows, Bitcoin’s price has fallen below the ETF’s flow cost basis, Alex Thorn, head of research at Galaxy Digital he said in the market update on Monday October.
“BTC is currently trading 7.3% below the average ETF creation cost ($84,000), although it was trading 10% below that level on Saturday, January 31,” Thorn noted, adding:
“BTC has not traded below the average ETF creation cost basis since the summer and early fall of 2024, when it hit levels as low as -9.9%. It is reasonable to expect this level to serve as near-term support.”
Thorn also pointed to Bitcoin’s realized price of $56,000, noting that BTC has historically found support “around or just below” that level before the bull market.
James Butterfill, head of research at CoinShares, he said the market is facing unfavorable capital flows, decoupling of Bitcoin from global money supply trends, geopolitical tensions and uncertainty over US monetary policy following the nomination of Kevin Warsh as Federal Reserve Chairman.
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“However, longer term, the outlook remains constructive as structural concerns about currency depreciation remain and the current lag on liquidity trends signals potential for catch-up,” Butterfill added.
On Monday, CoinShares reported that exchange-traded products lost another $1.7 billion last week, doubling outflows from the previous week.
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