After weeks of sustained selling pressure, institutional demand has begun to recover.
To put it in perspective, US spot Bitcoin ETFs have recorded over $6 billion in net outflows over the past two months. Notably, this coincided with Bitcoin’s roughly 25% correction, highlighting how closely ETF flows track Bitcoin’s price movement.
With flows turning positive again, it is not surprising that the market is starting to wonder if institutional sentiment has finally turned.
As the chart below shows, over $200 million has flowed into Bitcoin ETFs so far this month, along with BTC’s 9%+ rebound. Simply put, Bitcoin’s recovery is still highly dependent on the institutional situation, making ETF inflows a key signal to watch in the coming weeks.
However, it is probably still too early to call this a complete return to institutional demand.
According to CryptoQuant, the Coinbase Premium Index for Bitcoin remains negative province Although BTC rose from $58,000 to $64,000.
In other words, US investors are still not buying the dip aggressively, suggesting that the recent rally lacks strong immediate demand from institutions.
More importantly, it is the biggest risk Bitcoin (BTC) The recovery may not be weak through ETF inflows alone.
Instead, another key signal on the chain suggests that the recent $200 million ETF inflows could simply reflect a short-term rotation, rather than the beginning of a broader structural shift in institutional demand.
ETF flows alone do not confirm a bullish reversal
As the largest cryptocurrency by market cap, Bitcoin remains the market’s anchor.
However, despite Bitcoin ETF flows recovering and BTC.D rising 1.5% over the past week to hover around 60%; Capital continues to rotate in Ethereum.
The ETH/BTC ratio has now posted three consecutive weeks of gains and is heading into a fourth week. Key takeaway? This rotation doesn’t seem like a fluke.
As the chart below shows, Ethereum ETFs attracted more than $233 million in net inflows this month, outpacing Bitcoin on a relative basis. More importantly, ETH ETFs saw much lower outflows during the recent correction.
In other words, Ethereum faced less institutional selling on the way down and attracted stronger buying on the way back up, which is a clear sign that institutional capital prefers ETH over BTC.
In essence, the recent inflows from Bitcoin ETFs look more measured than cheerful.
Pair that with the Coinbase Premium passive indicator and Ethereum (ETH) Continuing strength across both technical and institutional flows, Bitcoin’s recent rebound is starting to look more like a short-term turnover than the beginning of a broad structural shift in institutional demand.
Bottom line? To be sure, ETF flows have improved, but the broader institutional picture has not completely turned around. Until spot demand in the US strengthens and Bitcoin begins to regain relative strength against Ethereum, the recent recovery still lacks a major confirmation signal.
