Exchange-traded funds (ETFs) for the main cryptocurrencies experienced a strong recovery last week. Investors return to Bitcoin and Ethereum ETFs, injecting a combined total of $600 million in new capital. This positive movement, reported after several days of outflows, suggests a notable shift in market sentiment.
The latest data from the analytics platform Farside Investors was clear. Spot Bitcoin ETFs operating in the United States managed to capture $113 million in net inflows on Friday alone. This figure is particularly relevant because it broke a negative streak of five consecutive days of capital outflows. The Bitcoin market, which had shown signs of weakness, responded positively to this renewed confidence.
Concurrently, Ethereum ETFs also showed considerable strength. They registered massive inflows of $488 million during the week. However, it is crucial to understand the origin of this capital.
Bitcoin Leads the Recovery While Ethereum Prepares Its Debut
Last week was especially volatile for the digital economy. Bitcoin had faced constant selling pressure. This pressure caused the aforementioned streak of outflows in its popular ETF products. The rapid reversal of this trend underscores the resilience of institutional demand. The interest in Ethereum, on the other hand, is largely due to anticipation of final approval for trading its own spot ETFs. The market is reacting to the preparations for this launch.
Bloomberg ETF analyst Eric Balchunas provided key context regarding the Ethereum figures. He explained that most of that $488 million did not come from public purchases. Instead, it represents “seed funding”.
Is This Capital Inflow the Definitive Sign of a Bullish Return?
“Seed capital” is the initial money that the issuing firms themselves deposit into the funds before they are opened to the public. It is a necessary and technical step for the launch. Although this capital injection into ETH is structurally positive, it does not yet reflect real market demand from retail or large institutions. Therefore, the true appetite for Ethereum ETFs will be measured in the coming weeks, once they begin trading actively.
Bitcoin’s situation is different. The $113 million inflows do represent a positive net flow from external investors, which is a more direct bullish signal. It indicates that, despite recent volatility, buyers are taking advantage of the lower prices.
The combined inflow of $600 million certainly revitalizes optimism in the crypto market. The behavior of Bitcoin flows will be vital to confirm if the bearish momentum has ended. Likewise, all eyes will be on the trading performance of Ethereum ETFs once they begin operations. The market is waiting cautiously to see if this wave of capital can be sustained and mark the beginning of a new upward trend.
