Bitcoin ETF Inflows Spike as Market Confidence Creeps Back

After weeks of caution following October’s historic crypto crash, U.S. spot Bitcoin ETFs are once again drawing investor interest.

Data from Farside Investors shows that Bitcoin funds brought in $524 million in net inflows on Tuesday – the largest daily increase since early October and a sign that institutional appetite may be returning.

The renewed demand follows the U.S. Senate’s approval of a bipartisan funding deal aimed at ending the prolonged government shutdown. The prospect of restored stability in Washington appeared to boost confidence across risk assets, including digital currencies.

According to CryptoQuant CEO Ki Young Ju, institutional demand through ETFs – alongside corporate purchases led by Michael Saylor’s Strategy – has been a major force behind Bitcoin’s price performance throughout the year.

On trading platforms, the shift in sentiment is already visible. Blockchain analytics from Nansen show that “smart money” traders have opened roughly $8.5 million in new long positions over the past 24 hours, anticipating further gains. Despite the optimism, leveraged positions on decentralized exchanges remain slightly net short overall.

Bitcoin ETFs had suffered persistent outflows since the early-October sell-off, with daily redemptions peaking near $700 million at one point. The new inflows, however, suggest that the worst of the “de-risking phase” may be over.

Meanwhile, Ethereum ETFs recorded $107 million in outflows on Tuesday, while Solana products extended their winning streak with another $8 million in positive inflows, underscoring a selective but growing return of risk appetite among digital asset investors.