After weeks of significant withdrawals, both Bitcoin and Ether spot Exchange Traded Funds (ETFs) have experienced a notable turnaround, marking a decisive shift from outflows to net inflows. This resurgence signals renewed investor confidence in the crypto market, prompting analysts to suggest a potential short-term bottom for Bitcoin.
Bitcoin ETFs See Resurgence
Spot Bitcoin ETFs have successfully ended a four-week period of continuous outflows, registering a positive net inflow of approximately $70 million during the past week. This marks a crucial reversal after the sector witnessed around $4.35 billion drained over the preceding month. On Friday alone, Bitcoin funds attracted $71 million in net inflows, contributing to nearly $57.7 billion in cumulative inflows since their inception. While some funds like BlackRock's IBIT experienced daily outflows, these were more than offset by strong performances from rivals such as Fidelity's FBTC and ARK 21Shares' ARKB.
Ether ETFs Follow Suit
The positive momentum extended to spot Ether ETFs, which also broke a three-week streak of substantial withdrawals. They recorded an impressive $312.6 million in weekly net inflows, recovering from a period that saw approximately $1.74 billion exit the funds. On Friday, Ether ETFs reported $76.6 million in inflows, bringing their cumulative net inflows to $12.94 billion since launch, further cementing the overall positive shift in the crypto ETF landscape.
Market Analysts Eye Bitcoin's Potential
The renewed interest in crypto ETFs coincides with a bullish outlook from market analysts regarding Bitcoin's future trajectory. Experts suggest that Bitcoin may have established a short-term bottom, citing indicators like an approaching oversold Relative Strength Index (RSI) and "whale" investors opening new long positions. This confluence of factors increases the probability of a significant rally, with some analysts forecasting a potential surge towards the $100,000-$110,000 range. Furthermore, current Bitcoin prices are seen as potentially undervalued, not yet reflecting improved macroeconomic expectations, hinting at considerable upside potential.
