- U.S.-listed spot bitcoin exchange-traded funds attracted more than $1 billion this week, signaling renewed but still tentative institutional demand.
- Bitcoin’s three steep rallies since January 2024 coincided with average daily ETF inflows above $200 million, compared with about $86 million a day since July 1.
- A sustained bitcoin rally may require stronger, steadier ETF inflows, though futures trading and direct purchases can also drive prices higher.
Bitcoin BTC$84,459.46 exchange-traded funds (ETFs) are back in favor, but not yet at the pace that has historically fueled steep rallies.
These U.S.-listed funds have pulled in over $1 billion in investor money this week, according to SoSoValue data.
Analysts are calling it a sign of renewed institutional bid for the cryptocurrency, with a warning that the pace must remain robust for a sustained uptick in bitcoin's price.
"Institutional demand shows tentative improvement. However, flows remain volatile and sustained inflows are needed to confirm a stronger recovery," Vikram Subburaj, CEO of India-based Giottus, said in an email.
History offers some support. Steep uptrends have been characterized by average daily net inflows of over $200 million.
Since the funds launched in January 2024, bitcoin has had three steep rallies, a stretch in which bitcoin gained more than 50% without ever falling more than 20% from its highest point along the way.
In the first, from Jan. 23 to March 14, 2024, bitcoin rose 79% from about $39,900 to $71,400. The funds took in an average of $294 million a day, with 10 days of $500 million or more and one of $1 billion or more.
The second ran from Aug. 5 to Dec. 17, 2024. Bitcoin gained 96%, from about $54,100 to $106,100. Daily inflows averaged $202 million, with 16 days of $500 million or more and three of $1 billion or more.
In the third, from Apr. 6 to Jul. 14, 2025, bitcoin rose 53%, from about $78,400 to $119,900. Inflows averaged $248 million a day, with 13 days of $500 million or more and two of $1 billion or more.
Across those 199 trading days, the funds took in $46.7 billion, an average of about $235 million a day. There were 39 days of $500 million or more and six of $1 billion or more.
The current pace is slower.
Since July 1, bitcoin has gained 39%, from about $60,000 to $83,500. The funds had seven days of $500 million or more in that time, about one in 11 trading days, against about one in five during the three steep rallies.
The average of about $86 million a day is well below the $200 million-plus of those steep rallies, and there hasn't been a single day of $1 billion or more.
So, if history is a guide, a steep run higher from here would require a steady pace of inflows. That said, the past is a guide, not a promise, though. Demand coming through other channels, such as futures or direct purchases of the token in the spot market, can also lift prices.
