Bitcoin ETFs Record Strongest Weekly Inflows Since October as Institutional Demand Returns

Bitcoin spot ETFs have captured $1.42 billion in institutional capital during their strongest weekly performance since early October, signaling a decisive shift in market dynamics as reduced whale selling pressure combines with tightening effective supply to create favorable conditions for institutional accumulation.

The resurgence in ETF demand represents a fundamental reversal from the outflows that characterized late 2025, with regulated Bitcoin investment products attracting $697 million on Tuesday alone—the largest single-day inflow since October 7th. This institutional stampede pushed total first-week inflows past $1.1 billion, demonstrating that corporate treasuries and institutional allocators view current price levels near $95,226 as compelling entry points for long-term strategic positions.

The timing of this institutional reentry reflects sophisticated market positioning around several converging factors. Whale selling pressure, which created significant headwinds throughout October and November when dormant Bitcoin addresses liquidated positions held since as early as 2010, has substantially diminished. Large holders who drove whale positions down from approximately 3 million Bitcoin to around 2 million Bitcoin have largely completed their distribution cycles, removing a persistent source of selling pressure that had weighed on prices despite strong ETF demand.

This reduction in whale activity coincides with a structural tightening of Bitcoin’s effective supply. Mining production increases of 339% year-over-year at major operations like Bitdeer’s 636 Bitcoin December output cannot offset the combination of institutional accumulation and the maturation of Bitcoin’s monetary policy. With Bitcoin maintaining its 59% market dominance across a $3.2 trillion crypto market capitalization, the asset continues to capture the majority of institutional flows seeking digital asset exposure.

The institutional appetite extends beyond passive ETF accumulation. Corporate treasuries deployed $1.25 billion at an average price of $91,500 during the week, representing the largest weekly purchase since July and lifting institutional Bitcoin holdings above 687,400 Bitcoin. This corporate buying pattern suggests institutional decision-makers are positioning for Bitcoin’s evolution from a speculative asset to a macro-financial instrument that responds to global liquidity cycles.

Current market conditions support this institutional thesis. With $7.5 trillion sitting in rrent market funds that could rotate into risk assets as quantitative tightening ends and fiscal dominance takes hold, Bitcoin’s historical correlation with global M2 money supply growth positions the asset as a beneficiary of looser monetary conditions ahead. The Federal Reserve’s pivot toward growth over austerity, driven by debt-to-GDP ratios near 125%, creates an environment where Bitcoin’s finite supply becomes increasingly attractive to institutions seeking inflation hedges.

Technical indicators reinforce the fundamental case for sustained institutional demand. Bitcoin’s break above its 100-day moving average signals potential for a sustained move toward the psychologically significant $100,000 level and the 200-day moving average currently situated at $106,115. Short covering accelerated as $700 million in bearish positions were liquidated during the rally, indicating that speculative positioning had become overly pessimistic relative to underlying institutional demand.

The ETF infrastructure itself has matured into a reliable institutional access point, with spot Bitcoin exchange-traded products holding $123 billion in assets under management despite temporary outflows in late 2025. This represents a structural shift where Bitcoin ETFs function as a permanent allocation channel rather than a speculative trading vehicle, providing institutional investors with regulated exposure that circumvents operational complexities of direct Bitcoin custody.

Looking ahead, the convergence of reduced whale selling, institutional accumulation through ETFs, and corporate treasury adoption creates a supply-demand dynamic that favors sustained price appreciation. With Bitcoin trading at $95,226 and demonstrating resilience above key technical levels, institutional investors appear positioned to drive the next phase of price discovery as digital assets mature from alternative investments to core portfolio allocations within diversified institutional portfolios.

The $1.42 billion weekly ETF inflow milestone represents more than a temporary demand surge—it signals Bitcoin’s integration into institutional investment infrastructure during a period when macro conditions, supply dynamics, and regulatory clarity align to support sustained institutional adoption across corporate treasuries, pension funds, and asset management platforms.