Capital flows into cryptocurrency ETFs show a strong return of investors since October

Exchange-traded funds investing in Bitcoin and Ether have recorded an outstanding weekly movement, becoming the focus of institutional investors’ attention. Inflows into spot ETFs reached multi-billion dollar volumes, which analysts interpret as a sign of a serious return of professional capital to the cryptocurrency market. This change in dynamics contrasts with the period that began as early as October, when investor interest was less pronounced.

Billions of dollars flowing into spot ETFs

The past week brought impressive results for Bitcoin funds. Eleven spot BTC ETFs accumulated a net inflow of $1.42 billion — the best figure since early October. Leading the position was IBIT from BlackRock, which attracted $1.03 billion on its own. This result demonstrates that the world’s largest asset manager remains a key player in the institutional sector of cryptocurrencies.

Ether was not left behind in attracting capital. Spot ETH ETFs received inflows of $479 million, setting a record since early October. BlackRock again accounted for a significant part of this inflow through its ETHA fund, which accumulated $219 million. The overall picture indicates that institutions are actively positioning themselves in both the first and second largest digital assets by market capitalization.

From arbitrage to long-term positions: a shift in institutional strategy

Analysts and market specialists highlight a key feature of the current capital flow: it is not about short-term speculative movement but about the return of “sticky” institutional capital. This means moving away from the previously popular scheme of modern financial arbitrage, known as cash-and-carry, which involved simultaneously opening long positions in ETFs and short positions in CME futures.

The profitability of such arbitrage has significantly decreased, prompting investors to reconsider their strategy. Now, the main focus shifts to forming pure long positions, signaling bullish expectations. This transition from mechanical profit schemes to growth positioning is a stronger signal for the market, as it indicates genuine conviction among professionals in the prospects of the assets.

Price momentum: Bitcoin and Ether growth in January

The correlation between increased ETF inflows and price movements is particularly noticeable. This month, Bitcoin has risen by 6% and is trading near the level of $87,990, while Ether has increased by about 8% and hit levels around $2,930. Current prices reflect not only technical demand from ETFs but also a shift in the overall market tone.

CoinDesk experts emphasize the importance of this moment: institutional capital is now actively shaping the market structure rather than passively following retail investors. This is fundamentally different from the concluding months of 2025, when BTC experienced volatility despite moderate interest in ETFs.

Strategic positioning ahead of anticipated events

The current dynamics of capital flows are not accidental. Analysts suggest that institutions are taking long positions in anticipation of potential regulatory clarity and macroeconomic shifts expected in the first quarter of 2026. This is especially relevant after the end of 2025 brought multi-billion dollar outflows from ETFs.

Maintaining this bullish momentum critically depends on the resilience of these flows in the coming weeks. The market awaits whether the return of institutional capital will be a consistent or temporary phenomenon. The answer to this question will largely determine the trajectory of Bitcoin and Ether in Q2 2026 and will be a key indicator for those tracking large-cap movements in digital assets.