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Bitcoin ETF inflows return as retail traders exit the market
Institutional money is flowing back into Bitcoin ETFs, reversing last week’s outflows, even as retail traders turn increasingly bearish. It can be said the shift underscores a growing divide between long-term institutional positioning and short-term retail sentiment.
Bitcoin ETFs recorded $387.6 million in net inflows across Monday and Tuesday, led by BlackRock’s IBIT.
Spot BTC prices remain range-bound between $111,000 and $113,000 despite ETF demand.
Retail sentiment has turned negative, with many traders expecting BTC below $100K and ETH under $3,500.
Santiment notes that bearish retail positioning could be a contrarian bullish signal.
Analysts expect the first Dogecoin ETF (Rex-Osprey DOGE) to launch this week.
Institutional inflows gain momentum
Bitcoin spot exchange-traded funds (ETFs) have seen two consecutive days of inflows this week, reversing a stretch of outflows that capped August. On Monday, the 11 approved funds recorded a combined $364.3 million in net inflows, followed by $23.3 million on Tuesday.
While Tuesday’s figure was modest compared to prior surges, the two-day total already exceeded last week’s cumulative inflows of $250 million over four sessions. BlackRock’s iShares Bitcoin Trust (IBIT) absorbed the bulk of Tuesday’s flows at $169.5 million, offsetting withdrawals from Fidelity, Bitwise, and ARK 21Shares.
Source: Santiment
The rebound highlights institutional confidence in Bitcoin’s long-term role, even as retail traders step back amid price stagnation.
Spot markets stay muted
Despite the ETF demand, Bitcoin’s spot price has remained locked in a narrow range. BTC traded between $111,000 and $113,000 this week, briefly touching $113,200 on Tuesday before retreating to $111,500 in Wednesday’s Asian session.
The Bitcoin Fear and Greed Index stood at 49—neutral—reflecting indecision across broader markets. Analysts note that ETF inflows typically follow spot price moves, but in this case, institutional flows appear to be leading sentiment.
Retail sentiment turns bearish
Blockchain analytics platform Santiment observed a growing divergence between institutional and retail behavior. While ETFs attract capital, smaller traders are bracing for sharp declines.
“Retail traders have changed their tunes, swinging more negative with expectations of Bitcoin falling back below $100,000, Ethereum below $3,500,” Santiment reported.
Historically, crypto markets often move opposite to crowd consensus. If this pattern holds, bearish retail sentiment may actually support prices, reducing the likelihood of the feared large retrace.
Dogecoin ETF on the horizon
In another sign of crypto’s evolution on Wall Street, analysts expect the first Dogecoin ETF to debut this week. The Rex-Osprey DOGE ETF is slated for launch on Thursday.
Meme coin ETF era about to kick off, it looks like, with DOGE slated for a Thursday launch. This is the first-ever US ETF to hold something that has no utility on purpose.
If approved, the Dogecoin ETF would mark a new chapter for meme coins, moving them from speculative corners of crypto into mainstream financial products.
Source: Bloomberg
