U.S. spot Bitcoin exchange-traded funds have recorded their best weekly performance in over three months, attracting $1.42 billion in net inflows for the period ending Jan. 16.
BlackRock's IBIT led the surge with $1.03 billion in weekly inflows. The combined total marked the highest weekly figure since early October, when Bitcoin ETFs last experienced comparable institutional demand.
Institutional Conviction and Market Dynamics
LVRG Research director Nick Ruck stated that these inflows demonstrate renewed institutional conviction in Bitcoin as a long-term holding, despite ongoing price volatility. This strong performance occurred as Bitcoin climbed from approximately $90,500 to approach $97,000 before experiencing a pullback.
Ruck suggested that last week's robust inflows indicate continued accumulation in 2026 and potential supply tightening that could support price recovery. However, he also noted that Bitcoin's pullback highlights the market's continued susceptibility to derivatives positioning and leverage dynamics.
Kronos Research CIO Vincent Liu commented that the retreat to $92,000 levels reflects over-leveraged long positions that were built on shallow liquidity. When the price reversed, forced liquidations accelerated the downside movement, even with structurally strong fundamentals in place.
The broader crypto market experienced approximately $824 million in total liquidations over a 24-hour period, with $763.7 million of that amount stemming from long positions. Liu emphasized that Bitcoin remains vulnerable to abrupt price movements driven by leverage and liquidity conditions, rather than solely by fundamental factors.
Broader Cryptocurrency ETF Performance
Ethereum ETFs also posted strong results, with $479 million in weekly inflows, matching their best performance since the week ending Oct. 10. The dual strength observed across both Bitcoin and Ethereum products suggests a broad institutional interest in cryptocurrency exposure through regulated fund structures.