Bitcoin remained in supply on Thursday amid signs of persistent demand for spot exchange-traded funds (ETFs).
The leading cryptocurrency traded near $72,500 on Thursday, according to market data from CoinDesk. U.S.-listed spot ETFs attracted another $155 million in net inflows on Wednesday, extending a recent streak of institutional buying that has helped lift prices after weeks of sluggish activity.
The new inflows bring total allocations to about $1.47 billion over the past two weeks, according to data curated by SoSoValue, marking a sharp pullback after several weeks of withdrawals earlier this year.
Institutional demand through ETFs has begun to stabilize after a difficult start to the year. Investors have poured roughly $1.7 billion into U.S. spot bitcoin ETFs since Feb. 24, according to Bloomberg Intelligence data previously reported by CoinDesk, suggesting that some investors are becoming increasingly comfortable that the market may have found at least a short-term bottom.
Earlier this week, Bitfinex analysts warned that ETF inflows do not always translate into immediate buying pressure in the spot market. Authorized participants can create and sell ETF shares before obtaining the underlying bitcoin, delaying the impact of those flows on the price.
Still, spot ETF inflows and bitcoin’s recent resilience during geopolitical tensions indicate the cryptocurrency’s growing macro relevance, according to some market participants.
“The market is increasingly repricing Bitcoin as a geopolitical hedge rather than simply a risk asset,” said Livio Weng, CEO of Bitfire. “Unlike gold, bitcoin trades 24/7 and can cross borders instantly, making it a natural escape valve for capital during periods of geopolitical tension.”
On-chain data calls for caution
Despite the rebound in flows, underlying demand signals remain fragile, according to Glassnode. In a recent report, the company said that buying momentum has weakened significantly, and that the 30-day moving average of realized earnings has fallen approximately 63% since the beginning of February.
The proportion of bitcoin supply held in profits has also fallen to about 57%, a level historically associated with the early stages of deeper bear market conditions. Glassnode added that short-term holders’ cost base near $70,000 could act as a key behavioral ceiling, potentially turning rallies into distribution zones as traders exit positions near breakeven.
