Key Takeaways
- Bitcoin ETFs recorded $524M inflows, marking the strongest day since October’s crash.
- Smart money traders added $8.5M in net long positions, signaling optimism.
- Analysts view the current correction as healthy, supporting renewed institutional participation.
Bitcoin ETFs Stage Strong Comeback
Bitcoin exchange-traded funds (ETFs) are showing renewed strength following the October crypto market crash. US spot Bitcoin ETFs recorded $524 million in cumulative net inflows on Tuesday, the largest single-day gain since the crash on October 10, according to Farside Investors. This inflow signals a resurgence in investor appetite for Bitcoin, especially among institutional and risk-tolerant investors.
“The $524 million inflows highlight a strong return of demand for Bitcoin, with ETFs and strategic investments driving much of the market activity this year,” noted Ki Young Ju, CEO of CryptoQuant.
Smart Money Traders Eye Upside
Institutional and sophisticated traders, often referred to as “smart money,” are also signaling growing optimism. Over the past 24 hours, smart money traders added $8.5 million in net long Bitcoin positions, according to Nansen’s blockchain intelligence platform. While they remain net short by $202 million on Hyperliquid’s decentralized exchange, these recent additions indicate a strategic repositioning for potential upside.
Also Read: Crypto Market on Fire: Smart Money Moves Before the Next Correction
The timing coincides with the US Senate approving a funding package, moving Congress closer to ending the government shutdown. This political development has bolstered confidence among traders anticipating improved liquidity and economic stability.
Analysts See Healthy Correction and Institutional Return
Despite retail concerns over the end of the bull cycle, analysts describe Bitcoin’s current correction as “healthy”, resetting leverage and preparing the market for renewed institutional inflows. Lacie Zhang, research analyst at Bitget Wallet, explained that cooling inflation data and policy developments could drive a liquidity-driven rebound in Bitcoin.
Also Read: Bitcoin Nears Breakout Ahead of FOMC Decision Amid Surge in Institutional and State Adoption
Moreover, sustained ETF inflows suggest the de-risking phase for ETF investors may be ending, as appetite for digital assets steadily returns. After daily outflows reached up to $700 million post-crash, ETFs have now extended an 11-day streak of net positive inflows, totaling $8 million, per Farside Investors.
Conclusion
The resurgence in Bitcoin ETF investments, combined with strategic moves by smart money traders, indicates that investor confidence in digital assets is rebounding. For traders and institutions, this trend presents an opportunity to re-enter the market as ETFs and macroeconomic signals align to support potential upside in Bitcoin prices.
