Spot Bitcoin ETFs Draw $1B Over 3 Days as Investors Buy Dip

What to Know

$1.02 billion in net inflows flowed into spot Bitcoin ETFs across three consecutive trading sessions this week, according to SoSoValue data
BlackRock's IBIT led the recovery with $275.82 million in net inflows on Thursday alone
$2.82 billion had drained from Bitcoin ETFs during the final two weeks of January before this week's reversal
Analysts say the 50% drawdown from Bitcoin's record high may be approaching exhaustion as dip buyers step in

Spot Bitcoin ETFs reversed weeks of outflows this week by pulling in more than $1 billion of net inflows across three consecutive trading sessions, according to SoSoValue data. The $1.02 billion surge from Tuesday to Thursday signals that institutional and retail investors alike are treating the current drawdown as a buying opportunity, even with Bitcoin still trading well below its all-time high.

BlackRock's IBIT Leads the Charge

Wednesday proved the strongest session during the rally, with spot Bitcoin ETF inflows hitting $506.51 million in a single day, according to SoSoValue. BlackRock's iShares Bitcoin Trust, known by the ticker IBIT, spearheaded the three-day recovery by logging $275.82 million in net inflows on Thursday alone. Other funds including Bitwise's BITB and Grayscale's BTC also recorded positive flows during the period.

Not every fund participated in the rebound. Fidelity's FBTC and Ark 21Shares' ARKB posted outflows over the same stretch, though those losses were more than offset by gains elsewhere in the category.

How Significant Is the $1B Bitcoin ETF Reversal?

The reversal is notable because it snaps a streak of five straight weeks of net withdrawals from spot Bitcoin ETFs. The final two weeks of January alone saw a combined $2.82 billion in outflows, according to fund flow data. ETF analyst Nate Geraci said in a post on X that investors appeared to be buying the dip amid Bitcoin's roughly 50% drawdown from its record high.

Geraci noted that spot Bitcoin ETFs have shed approximately $6.5 billion since Bitcoin reached its peak in early October, a figure he described as modest relative to the $55 billion the category has absorbed since its January 2024 launch.

50% drawdowns are walk in the park for long-time BTC investors. But appears newer ETF investors aren't worried either.
— Nate Geraci, ETF Analyst

Altcoin ETF Inflows Mirror the Trend

The positive momentum extended beyond Bitcoin into altcoin exchange-traded products. Spot Ether ETFs accumulated roughly $173 million in net inflows over the same three-day period, while Solana-focused funds attracted approximately $35 million. XRP ETFs posted a comparatively modest $7 million in inflows, according to SoSoValue.

What This Means Going Forward

Analysts are cautiously optimistic that the worst of the selling pressure may be subsiding. CoinEx chief analyst Jeff Ko told reporters that improving spot Bitcoin ETF inflows suggest aggressive liquidation may be fading, though he cautioned that a sudden V-shaped recovery is unlikely after such a steep decline.

Bitrue research lead Andri Fauzan Adziima pointed to oversold technical indicators and said sustained ETF inflows could serve as a catalyst for broader stabilization. Whether this week's $1 billion reversal marks the beginning of a lasting trend or a brief pause remains uncertain, but the data suggests dip buyers are stepping back in.