Bitcoin ETF Inflows Seem to be Losing Steam After BTC's Rally Past $100K

Bitcoin’s recent rally caught the attention of both institutional and retail investors. However, even after surging past $100K, spot Bitcoin ETFs in the U.S. are experiencing slower inflows than in previous rallies.

Nonetheless, Bitcoin ETFs still recorded inflows for the last three days. While this signals renewed confidence, the momentum is weaker than the previous peak on April 23 when the single-day inflows reached over $900 million

BTC ETF Inflows Rise Again but Show Weaker Momentum

U.S. spot Bitcoin ETFs, which had recently recorded outflows during a period of macroeconomic uncertainty, have now bounced back. The funds posted inflows of $142.3M, $117.4M and 321.4M, on May 7, 8, 9 respectively, as per data by Farside Investors.

Source: Farside InvestorsBut despite the rebound, the data shows that the pace of accumulation has slowed compared to previous market recoveries. Notably, on April 23, spot Bitcoin ETFs recorded $917 million in daily inflows, driven by the market recovery post tariff-related market correction

The recent spike in the price of Bitcoin has thus not been accompanied by the same level of ETF inflows. This can be interpreted as a sign of cautious optimism from institutions even as BTC enters the six-figure territory.

Fidelity’s FBTC Gains while BlackRock’s Regains Momentum

BlackRock’s iShares Bitcoin Trust (IBIT) had previously been the market leader, attracting $643.2 million in one day on April 23. Daily inflows had since fallen to the $30–70 million bracket on May 7 and 8. However, May 9 saw an influx of IBIT inflows reaching up to 356.2M hence signifying a regain of momentum.

On the other hand, Fidelity’s Wise Origin Bitcoin Fund (FBTC) has had a good performance this week. The fund attracted more than $75 million in inflows between 39.9M and 35.3M. But the inflows surged to 45.0M on May 9 helping it to regain momentum after last week’s net outflows.

Ethereum ETFs See Inflows as BTC Slows Down

As Bitcoin ETFs regained strength, Ethereum-based ETFs also rebounded. The data from Farside Investors shows that Ethereum spot ETFs recorded $17.6M inflows on May 9. The inflows however were only recorded on BlackRock’s Ethereum Trust (ETHA) with all ETFs remaining steady

Source: Farside InvestorsThis marks a shift in confidence around ETH amongst institutional investors as the coin rebounded to $2,300 level. The outlook on May 8 was different with $16.1 million exiting from Ether ETFs – all from ETHA.

The remaining eight ETH funds recorded zero inflows on May 9. This contrast raises concerns about institutional interest in Ethereum amid Bitcoin’s rising dominance.

As Ethereum regains confidence, Fidelity is expanding into alternative digital assets. The firm recently filed for a spot Solana ETF, which has now been acknowledged by the U.S SEC. This move is a diversification strategy as firms look for new opportunities in a changing digital asset market.

BTC’s Slowing ETF Demand Flash Cautious Optimism

Having moved into a six-figure zone, Bitcoin could test a new all-time high soon. However, the rally has to be backed by institutional demand through ETFs. But with the ETF inflows not reaching to levels recorded in previous price recoveries, it signals cautious optimism by institutional investors

Watching out on how the ETF flows behave in the coming week is crucial to determine the next move for BTC. As of now, the coin is trading at $103,449 as per Coinmarketcap data. But heightened institutional backing in the coming week could drive the price of Bitcoin higher