US spot Bitcoin ETFs recorded their largest daily inflows in weeks, even as data shows institutions sold the equivalent of 25,000 BTC in Q4 2025, highlighting a market caught between tactical buying and broader caution.Bitcoin ETF Flows Turn Positive After Weeks of OutflowsUS-listed spot Bitcoin exchange-traded funds (ETFs) posted $258 million in net inflows on Tuesday, marking the strongest single-day intake since early February, according to SoSoValue data. The rebound came as Bitcoin prices stabilized near $65,000–$66,000, snapping a string of daily redemptions.The inflows more than offset $203.8 million in outflows on Monday, pushing weekly ETF flows back into positive territory after five consecutive weeks of net withdrawals totaling $3.8 billion.Despite the short-term improvement, ETF assets under management remain under pressure. Since the start of 2026, total AUM across US spot Bitcoin ETFs has fallen about 30.5%, declining from roughly $117 billion to $81.3 billion.Fidelity and BlackRock Lead ETF InflowsAmong issuers, Fidelity’s Wise Origin Bitcoin Fund (FBTC) led Tuesday’s inflows with nearly $83 million, followed closely by BlackRock’s iShares Bitcoin Trust (IBIT), which attracted around $79 million, according to Farside data.Cumulative net inflows across all US spot Bitcoin ETFs remain above $54 billion, down from a peak of more than $62 billion in October 2025, suggesting that while some investors are reducing exposure, a significant base of long-term holders remains intact.Institutions Sold 25,000 BTC in Q4 2025The renewed ETF inflows come against a backdrop of notable institutional selling late last year. Bloomberg ETF analyst James Seyffart reported that investment advisers and hedge funds reduced their Bitcoin ETF exposure in the fourth quarter of 2025 by an amount equivalent to approximately 25,000 BTC.At current prices, that represents roughly $1.6 billion, a modest figure relative to Bitcoin’s estimated $1.3 trillion market capitalization. Even after the reductions, institutions tracked via 13F filings still hold around 311,700 BTC.Market Sentiment Remains FragileAnalysts estimate that around 45% of Bitcoin’s circulating supply — nearly 9 million BTC — is currently “underwater,” meaning holders are sitting on unrealized losses. This dynamic continues to weigh on sentiment, even as ETF flows show tentative signs of stabilization.Industry observers describe the current phase as part of Bitcoin’s longer-term maturation process. As speculative excess is gradually worked out of the system, short-term volatility and uneven capital flows are likely to persist.Tactical Buying, Not a Full Reversal — YetWhile the return of ETF inflows is a constructive signal, analysts caution that one strong day does not yet confirm a sustained trend reversal. For sentiment to meaningfully improve, ETF inflows would need to remain consistent, alongside stronger price structure and easing macro uncertainty.For now, the Bitcoin ETF market reflects a split reality: selective institutional re-entry on dips, set against a broader backdrop of risk management and cautious positioning.
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