Over the last week, the institutional market showed a strong reactivation, as Bitcoin ETF inflows led the sector with significant volume. James Butterfill, Head of Research at CoinShares, confirmed this positive movement, highlighting a notable shift in investor sentiment toward the leading cryptocurrency and the broader ecosystem.
Recent data reveals that crypto funds accumulated a total of $716 million for the week, with Bitcoin absorbing nearly half of that global figure. On the other hand, Bitcoin ETF inflows reached $352 million, marking a solid pattern of institutional accumulation. Surprisingly, XRP positioned itself as the second most requested asset, attracting $244 million driven by new leveraged products.
Likewise, a massive outflow of $18.7 million was recorded in financial products designed to bet against the price of Bitcoin. This figure represents the largest withdrawal from short funds since March 2025, suggesting that bears are capitulating to market strength. Ethereum, although with a more discreet role, managed to add $39 million in positive flows during the same analyzed period.
Are we witnessing the definitive end of the current institutional bearish sentiment?
The broader picture shows a partial recovery in total assets under management, which have risen 7.9% from November lows to $180 billion. However, this level remains far from the all-time high of $264 billion reached previously in the cycle. Recent macroeconomic factors in the United States have directly influenced these capital flow dynamics into digital assets.
The Bureau of Labor Statistics recently released new data on Personal Consumption Expenditures (PCE), indicating that inflation rose 2.8% year-over-year during September. This figure, slightly lower than forecasts and the data reported in August, has calmed certain fears about the US economy. However, latent inflationary pressures continue to generate some caution and momentary pauses in investments during specific days of the week.
Capital withdrawal from short products historically coincides with local price bottoms, which could signal a firm floor in current market valuation. If this trend of Bitcoin ETF inflows remains constant, retail investor confidence could be fully restored. Additionally, the prediction market assigns a high probability to a new interest rate cut by the Federal Reserve.
Bitcoin is currently trading around $90,259, reflecting a weekly gain of 6.6% that supports institutional optimism and capital flows observed recently. Looking ahead, it will be crucial to monitor if risk appetite consolidates following upcoming monetary policy announcements. The market appears ready to leave behind the extreme pessimism that characterized previous months.
