Bitcoin ETFs draw fresh inflows as traders move in on discounted prices

Demand for U.S.-listed bitcoin ETFs remained resilient on Monday, even as fears of a “Black Monday” selloff surfaced following bitcoin’s weekend drop below $75,000.

Investors funneled fresh capital into the 11 spot bitcoin ETFs, signaling continued institutional appetite for the cryptocurrency despite recent price volatility. The funds recorded combined net inflows of $561.8 million — the largest single-day intake since Jan. 14 — according to data from Farside Investors.

BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the inflows, attracting $142 million and $153.3 million, respectively. The buying came even as bitcoin slid to nine-month lows over the weekend, a move that unsettled global markets and raised concerns of disorderly trading at the start of the week.

Those fears ultimately failed to materialize. Markets stabilized on Monday, and the renewed ETF inflows snapped a near 10-day outflow streak during which investors pulled millions of dollars as bitcoin fell from roughly $98,000 to below $75,000.

A notable divergence remains between price action and ETF positioning. While spot bitcoin is down about 40% from its October all-time high, bitcoin ETFs still hold approximately 1.3 million BTC in assets under management — only about 5% below their October peak of 1.37 million BTC, according to data from Checkonchain.

Still, many ETF holders remain underwater. The average cost basis across U.S. bitcoin ETFs is estimated at around $84,099, while spot bitcoin is trading closer to $78,000.

Bitcoin has traded below ETF cost bases before, particularly during the second half of 2024, making the current drawdown an important test of investor conviction. A wave of capitulation-driven redemptions could amplify downside pressure, while continued inflows may signal confidence in bitcoin’s longer-term outlook.