Crypto ETF inflows signal investor confidence despite fragile market sentiment

Bitcoin spot ETFs pulled in $358 million in inflows on Thursday, a sign of sustained institutional interest even as broader cryptocurrency market sentiment remains entrenched in extreme fear. The Fear & Greed Index stood at 16 on Friday — barely improved from 14 the day before — underscoring persistent caution among retail investors. Yet the inflows into Bitcoin and Ethereum ETFs reveal a divergence: while retail sentiment sours, institutional capital continues to find entry points in regulated crypto vehicles.

Bitcoin traded at $71,616, up roughly 4% from its weekly open of $69,034, supported by the geopolitical de-escalation between the U.S. and Iran. Though price action remains capped below key moving averages — including the 100-day EMA at $75,438 — the asset held above the 50-day EMA at $70,587, suggesting short-term support is intact. The $358 million in daily inflows into Bitcoin spot ETFs contributed to a cumulative total of $56.50 billion, with net assets under management reaching $93.29 billion.

Ethereum followed a similar pattern. Spot ETFs attracted $85 million in inflows on Thursday, breaking a two-day streak of outflows that totaled over $84 million. The rebound pushed cumulative inflows to $11.60 billion, with $12.69 billion in net assets under management. Ethereum traded at $2,182, above its 50-day EMA of $2,153 but still well below longer-term resistance levels.

XRP told a different story. US-listed XRP spot ETFs saw $661,000 in outflows on Thursday, adding to a broader trend of weakening demand. With no flows recorded the previous day and price hovering around $1.34 — beneath all major moving averages — investor apathy toward XRP persists. Cumulative inflows stand at $1.21 billion, with $955 million in net assets under management. The divergence in ETF flows highlights a market where institutional capital is increasingly selective, favoring assets with established regulatory acceptance and liquidity. Investor interest in crypto ETFs diverged by asset class, signaling selective institutional demand despite overall market caution.