U.S. spot Bitcoin exchange-traded funds (ETFs) snapped a seven-day outflow streak on Tuesday, recording $355 million in net inflows as analysts pointed to early signs of improving global liquidity and renewed institutional appetite.The rebound follows a difficult stretch for Bitcoin ETFs, which had seen $1.12 billion in cumulative outflows over the previous seven trading sessions amid falling prices, year-end positioning, and thin holiday liquidity.BlackRock, ARK and Fidelity Lead ETF ReboundAccording to data from SoSoValue, BlackRock’s iShares Bitcoin Trust (IBIT) led the recovery with $143.75 million in inflows. It was followed by:Ark 21Shares Bitcoin ETF (ARKB): $109.56 millionFidelity Wise Origin Bitcoin Fund (FBTC): $78.59 millionBitwise Bitcoin ETF (BITB): $13.87 millionGrayscale Bitcoin Trust (GBTC): $4.28 millionVanEck Bitcoin ETF (HODL): $4.98 millionThe inflows came after heavy selling pressure last week, including a $275.9 million outflow on Friday, the worst single-day drawdown during the streak.Despite Tuesday’s turnaround, December remains net negative, with spot Bitcoin ETFs shedding approximately $744 million overall as investors reduced exposure into year-end.Liquidity Conditions Show Early Signs of ImprovementMarket participants attributed the shift in ETF flows to improving global liquidity conditions.Arthur Hayes, co-founder of BitMEX, said in a post on X that U.S. dollar liquidity likely bottomed in November and has begun to edge higher, a development he views as supportive for crypto markets.“Dollar liquidity likely bottomed in November and is inching higher,” Hayes wrote, suggesting the setup favors a renewed push in digital assets.Other analysts echoed the view. Crypto commentator Mister Crypto noted that global money supply indicators are “going vertical,” pointing to expanding liquidity across major economies.He also highlighted upcoming U.S. Treasury bill purchases by the Federal Reserve, noting that the Fed is set to inject $8.165 billion into markets this week — a move that could further ease financial conditions.Ether ETFs Turn Positive as XRP ETF Inflows ContinueThe positive momentum extended beyond Bitcoin.Spot Ether ETFs ended a four-day outflow streak on Tuesday, posting $67.8 million in net inflows, according to SoSoValue data. That followed more than $196 million in cumulative outflows over the prior four sessions, including a $95.5 million drawdown on Dec. 23.Meanwhile, spot XRP ETFs continued to stand out, extending their inflow streak to 30 consecutive trading days with an additional $15 million added on Tuesday — reinforcing the trend of selective institutional allocation toward alternative crypto assets through regulated vehicles.
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