Bitcoin ETF escapes outflow pressure, supported by institutional investors with five consecutive days of recovery

On February 2nd, the physical Bitcoin ETF in the United States recorded a large inflow of $562.62 million, dramatically reversing the previous outflow trend. This rapid influx of funds reflects a significant shift in market sentiment. Breaking away from the recent cautious market environment, active buying by institutional investors seeking to acquire at lower prices has driven this resurgence of inflows.

From a 5-day outflow trend to a major turning point

Prior to this, there had been a continuous five-day period of selling pressure on Bitcoin ETFs. During times of cooling investor sentiment, outflows tend to accelerate. However, the large inflow on February 2nd indicates how quickly market participants’ emotions can change. According to data analysis by NS3.AI, this shift is not just a temporary rebound but suggests a deeper change in market structure.

Accelerated inflows by institutional investors support the ETF market

Industry giants BlackRock and Fidelity are playing leading roles in driving this inflow phase. Their proactive buying signals a strong message across the market. Additionally, notable entries from Bitwise and ARK Invest have contributed to a multi-layered buying environment, with several major players simultaneously repurchasing. This layered inflow pattern reflects a growing consensus among institutional investors that the market has reached a bottom.

Market sentiment reversal signals a buying opportunity

The rebound in inflows after experiencing five days of selling pressure clearly indicates a shift in investor sentiment. Investors who had been cautious are now moving to reallocate into Bitcoin ETFs. This pattern of liquidity recovery is an important indicator that the market may be beginning to bottom out. Continued position-building by institutional investors could lay the foundation for a new upward phase.