Institutional investors have notably increased their exposure to Bitcoin with U.S. spot Bitcoin ETFs drawing $843.62 million in net inflows on Wednesday alone. This represents the highest single-day capital injection into these funds since October 7 and has propelled Bitcoin (CRYPTO: BTC) to challenge the significant psychological resistance level of $100,000.
Wednesday’s substantial inflow concludes a vigorous three-day period during which Bitcoin ETFs accumulated a total of $1.71 billion. This shift in capital allocation contrasts sharply with the initial week of January when these same ETFs experienced outflows totaling $1.38 billion from January 6 through January 9, reflecting a phase of investor caution and capital retraction.
The momentum began to reverse rapidly, with Tuesday bringing $753.73 million in fresh investments, the largest single-day inflow since late September. Wednesday surpassed this figure, marking a new peak in capital inflows over the last three months. BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) was instrumental in this surge, attracting $648 million on Wednesday by itself, underscoring its dominant role in institutional Bitcoin investment strategies.
Other key ETFs contributing to the inflows included Fidelity’s Wise Origin Bitcoin Fund (NYSE: FBTC), which secured $125.4 million, and the Ark & 21Shares Spot Bitcoin ETF (NYSE: ARKB) with $27 million in net inflows. Out of the 12 U.S. spot Bitcoin ETFs active during the session, eight reported net inflows, signaling strong and widespread institutional demand across different fund providers.
January’s ETF activity reflects a recovery narrative, with total net inflows reaching $1.81 billion over 14 trading days. Positive inflows were recorded on six days and outflows on three. The most significant inflow day was the aforementioned $843.62 million on Wednesday, while the largest single-day outflow of $486.08 million occurred on January 7. According to Nick Rick, director of LVRG Research, this inflow trend suggests a resurgence of institutional capital deploying into crypto assets after a period of cautious repositioning and risk reduction at the end of the previous year.
Currently, total assets held by Bitcoin ETFs stand at $128.04 billion, constituting approximately 4.54% of Bitcoin’s total market capitalization. Since their inception, cumulative net capital inflows into these funds have reached $58.12 billion. Trading volume in these ETFs is robust, with daily volumes averaging $6.26 billion, reflecting active institutional engagement.
Institutional interest is not limited to Bitcoin. Spot Ethereum (CRYPTO: ETH) ETFs have also experienced sustained demand, with Wednesday marking their third consecutive day of net positive inflows amounting to $175 million. Additionally, spot ETFs for Solana (CRYPTO: SOL) and XRP (CRYPTO: XRP) posted inflows of $23.5 million and $10.6 million respectively, broadening the scope of institutional participation within the cryptocurrency ecosystem.
Vincent Liu, Chief Investment Officer of Kronos Research, highlighted that persistent net inflows into crypto ETFs could establish a "structural tailwind" for crypto prices, particularly underpinned by emerging regulatory clarity. Notably, a draft bill by the U.S. Senate Banking Committee proposes granting major alternative cryptocurrencies a commodity status akin to Bitcoin, potentially enhancing institutional confidence.
Despite these inflows, Bitcoin’s trading pattern shows cautious consolidation immediately below the $100,000 psychological barrier. As of the latest data, the price is nearly flat, reflecting a minor decline of 0.40%. The digital asset maintains support above integral moving averages: $91,860 for the 20-day and $92,068 for the 50-day averages, which preserve the short-term bullish trend.
However, the 200-day moving average, positioned at $99,560, has so far resisted efforts to maintain a sustainable breakout above this level, resulting in multiple test points and reversions. Technical analysts note that a confirmed breakout beyond the $99,500 to $100,000 range could validate an ascending triangle pattern, with potential upside targets near $104,000 and possibly $108,000.
The current consolidation phase suggests the market is poised for a significant directional move, contingent on whether bullish momentum can surmount the key $100,000 threshold. Immediate support levels are identified at $95,000, followed closely by convergence points near $92,000 where the shorter-term moving averages overlap, with additional backing around $89,000. A failure to hold above $95,000 may denote a setback in the breakout attempt.
| Asset | Last Price | Change |
|---|---|---|
| Bitcoin (BTC) | $95,998.69 | -0.99% |
| Ethereum (ETH) | $3,339.86 | -0.45% |
| Solana (SOL) | $143.73 | -2.02% |
| Ripple (XRP) | $2.09 | -2.07% |
| ARK 21Shares Bitcoin ETF (ARKB) | $31.86 | -1.86% |
| Fidelity Wise Origin Bitcoin Fund (FBTC) | $83.59 | -1.80% |
| iShares Bitcoin Trust (IBIT) | $54.41 | -1.85% |