Institutional capital makes a large-scale return, and Bitcoin and Ethereum ETF fund inflows reach their highest level in 3 months

U.S.-listed Bitcoin spot ETFs and Ethereum spot ETFs recorded their strongest week in the past three months last week, attracting a combined several billion dollars in new funds. This large-scale capital inflow is being seen not just as short-term speculation but as a sign of institutional investors making a genuine return to the market.

BlackRock leads the way, record-breaking capital flows into the two major crypto asset ETFs

According to TradingView data, 11 spot Bitcoin ETFs saw a net inflow of $1.42 billion last week, the largest since the second week of October. Among them, BlackRock’s spot ETF IBIT alone received $1.03 billion in inflows, leading the market.

Ethereum spot ETFs also performed well, gathering $479 million in the highest weekly inflow since early October. BlackRock’s ETHA attracted notable inflows of $219 million, and the bullish activity of both funds is driving the overall market.

Year-to-date, Bitcoin ETFs have seen $1.21 billion in capital inflows, while Ethereum ETFs have attracted $584.9 million, indicating steady buying by institutional investors.

Institutional investors’ full-scale return suggests a major shift in market structure

Until now, the market has been dominated by “cash-and-carry” arbitrage trades, where ETF long positions and CME futures short positions are held simultaneously. However, this week’s large inflow signals a decline in this arbitrage activity, as reported yields are losing their attractiveness.

Analysts point out that this capital inflow reflects a genuine return of “sticky” institutional capital to the market. Unlike the ETF outflows over the past three months, this suggests that institutional investors are entering with a long-term holding stance.

CoinDesk’s market insight model states, “The strong correlation between ETF capital inflows and price movements suggests that institutional investor capital is actively driving market structure, rather than simply following retail sentiment.” This pattern is markedly different from the situation in late 2025 when Bitcoin struggled despite moderate interest in ETFs.

Price rally and market outlook: Will ETF capital inflows continue?

In response to this institutional capital return, Bitcoin’s price has risen 6% this month to reach $92,600. Meanwhile, Ethereum has increased by about 8%, reaching $3,200, highlighting the link between ETF inflows and price gains.

Market analysts believe that institutional investors are positioning ahead of expected regulatory clarity and macroeconomic changes in Q1 2026. After experiencing billions of dollars in outflows at the end of 2025, the key to significant price increases for Bitcoin and Ethereum will be sustained ETF capital inflows.

In the coming months, fund flows from institutional investors are likely to be a major factor shaping the overall trend in the cryptocurrency market.