SKN | Bitcoin ETFs Rebound With $561 Million Inflows After $1.5 Billion Sell-Off as Market Headwinds Persist

Spot Bitcoin exchange-traded funds (ETFs) recorded a notable rebound on Monday, attracting approximately $561 million in net inflows after suffering a sharp $1.5 billion sell-off the previous week. The recovery comes amid heightened volatility across digital asset markets, where macroeconomic uncertainty and institutional repositioning continue to weigh on sentiment despite intermittent price bounces.

The renewed inflows coincided with a modest recovery in Bitcoin’s price action. After briefly slipping below $75,000 over the weekend, Bitcoin rebounded sharply, climbing above $79,000 intraday before stabilizing near $78,200, according to CoinGecko data. While the ETF inflows offered short-term relief, analysts remain cautious about the sustainability of the move given broader structural pressures.

ETF Flows Signal Tentative Stabilization

Monday’s inflows marked the first positive day for spot Bitcoin ETFs after four consecutive sessions of net outflows. Data from SoSoValue shows that while the $561 million inflow offsets a significant portion of last week’s selling, year-to-date ETF flows remain negative by roughly $1 billion. Total outflows since the start of the year stand at approximately $4.6 billion, counterbalanced by $3.6 billion in inflows.

In contrast, Ether ETFs continue to struggle. On the same day, Ether-based funds posted additional net outflows, bringing their cumulative weekly losses to nearly $2.9 billion. The divergence highlights Bitcoin’s relatively stronger positioning among institutional investors during periods of market stress.

Price Levels and Cost Basis Under Pressure

A key concern for market participants is Bitcoin’s position relative to ETF cost basis levels. Galaxy Digital’s head of research, Alex Thorn, noted that Bitcoin is currently trading about 7.3% below the average ETF creation cost basis of roughly $84,000. Over the weekend, that gap briefly widened to nearly 10%, marking the first sustained period below this threshold since mid-2024.

Historically, such levels have acted as technical support zones. Thorn also pointed to Bitcoin’s realized price near $56,000, a level that has previously served as a foundation during late-cycle consolidations before renewed upside momentum. Whether these historical patterns hold in the current macro environment remains an open question.

Macro and Regulatory Overhangs Shape Sentiment

Beyond technical factors, macroeconomic uncertainty continues to influence ETF flows. James Butterfill, head of research at CoinShares, highlighted persistent capital outflows driven by geopolitical tensions, Bitcoin’s recent decoupling from global liquidity trends, and renewed uncertainty around U.S. monetary policy following Kevin Warsh’s appointment as Federal Reserve Chair.

CoinShares data further underscores the pressure, showing that crypto exchange-traded products shed an additional $1.7 billion last week, doubling the pace of outflows from the prior week. These dynamics suggest that institutional investors are still de-risking, even as selective inflows return.

Investor Psychology and Strategic Positioning

The recent ETF rebound appears less like a wholesale shift in sentiment and more like tactical allocation at perceived support levels. Investors seem increasingly sensitive to cost basis metrics and historical price anchors, stepping in cautiously rather than aggressively rotating capital back into risk assets.

Looking ahead, Bitcoin ETFs may continue to experience choppy flows as markets balance short-term macro risks against longer-term structural narratives, including concerns around currency debasement and sovereign debt. While near-term volatility remains elevated, sustained stabilization above key support zones could re-open the door for incremental institutional demand if broader financial conditions improve.