Crypto ETFs Turn Green as Bitcoin Rebounds With $117 Million Inflow

Bitcoin spot ETFs recorded a significant turnaround on January 13, with $117 million in inflows. This marked a sharp contrast to the $681 million outflows seen in the first week of January. The rebound came as investors began to reassess risk appetite amid shifting market dynamics.

Market sentiment appeared to stabilize, with Bitcoin holding its position near $90,546. Despite lingering uncertainty, the cryptocurrency's market dominance of 58.5% showed that it remained a key asset in institutional portfolios. The rebound was driven by renewed confidence in long-term positioning rather than short-term speculation.

Investors had been cautious for weeks, with risk-off positioning dominating early 2026. However, the latest inflow suggests a shift in sentiment as traders waited for clearer signals from the Federal Reserve and geopolitical developments. Macro uncertainty had previously driven large outflows, but the market now appeared to be stabilizing.

Why Did This Happen?

The reversal in Bitcoin ETF flows was partly driven by improved risk appetite as market participants awaited policy clarity. The Federal Reserve's evolving stance on rate cuts played a central role. Recent data suggested that the central bank might delay cuts until late 2026, reducing immediate pressure on investors to retreat from crypto.

Geopolitical concerns remained a factor. Tensions in key regions continued to push capital into traditional safe havens, but the recent inflow signaled that institutional investors were starting to see value in Bitcoin despite the risks.

Bitcoin ETFs had seen a four-day outflow streak totaling $1.38 billion, led by BlackRock's IBIT, which lost $251.97 million. However, the recent inflow marked a potential turning point, with Fidelity's FBTC attracting $7.87 million.

How Did Markets Respond?

The broader market reacted to the inflow with cautious optimism. Bitcoin's price remained stable around $90,546, with no immediate signs of a breakout. Institutional investors were more interested in assessing long-term fundamentals than chasing short-term volatility.

Other crypto assets showed mixed results. Ethereum ETFs saw $93.82 million in net outflows on January 9, marking the third consecutive day of redemptions. Solana ETFs remained neutral, while XRP ETFs recorded $4.93 million in inflows.

The ETF landscape continued to evolve, with Morgan Stanley entering the market and filing for Bitcoin and Solana ETFs. This move reinforced the view that crypto was becoming a standard portfolio component rather than a niche allocation.

What Are Analysts Watching Next?

Analysts are now focusing on upcoming Federal Reserve guidance and the Supreme Court's decision on emergency tariff powers. These developments could influence investor behavior in the coming weeks.

Vincent Liu of Kronos Research emphasized that reduced risk appetite was spilling into crypto. He noted that positioning was likely to remain cautious until clearer signals emerged from the Fed and other policy bodies.

Bitcoin's technical positioning around $90,546 remained a key barometer for institutional confidence. A break below this level could trigger further outflows, while a sustained move higher might restore investor interest.

Bitcoin's $1.8 trillion market cap provided a broad context for the recent inflows. While the outflows earlier in the month had signaled broader concerns, the latest rebound suggested that investors were beginning to see value in long-term exposure.

Looking ahead, the ETF structure itself remained a key factor. Unlike direct crypto ownership, ETFs allowed for more immediate adjustments, making them sensitive to rapid sentiment shifts. This accessibility had accelerated outflows during risk-off periods but could also support inflows when sentiment improved.

The broader cryptocurrency ecosystem showed signs of stabilizing. Trading volumes and volatility metrics remained near pre-December lows, suggesting reduced speculative activity across digital assets. This environment contrasted with periods of institutional FOMO that had driven significant inflows into crypto products.

Bitcoin ETFs now held $116.86 billion in net assets under management on January 9, down from $123.52 billion on January 5. Despite the outflow streak, the market remained positioned for potential growth as long-term adoption continued to expand.

The cumulative total net inflow stood at $56.40 billion, slightly down from $57.78 billion over the same period. Total value traded declined to $2.97 billion, but this was expected given the broader market uncertainty.

BlackRock's IBIT led the inflows with $62.41 billion in cumulative net inflows. Fidelity's FBTC had accumulated $11.72 billion in total inflows. Grayscale's GBTC maintained -$25.41 billion in net outflows since converting from a trust structure.

The ETF structure had also enabled broader institutional participation. Bitwise's BITB had posted $5.89 million in outflows on January 9, while Ark & 21Shares' ARKB and other funds recorded zero flows. This reflected the diverse range of investor behavior and positioning.

As 2026 progresses, these flows will serve as a critical indicator of digital asset adoption among professional investors. The $681 million outflow represented more than a statistical data point—it reflected the ongoing evolution of cryptocurrency's role in institutional portfolios and the broader financial system's response to mounting uncertainties.