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Spot Bitcoin ETFs in the U.S. saw a strong rebound on Tuesday, recording $477.2 million in net inflows, according to data from SoSoValue. The renewed movement marks a notable shift in sentiment for investors seeking diversification as traditional assets like gold lose appeal.
“Yesterday’s return to net positive flows signals a potential stabilization in institutional sentiment after recent volatility, suggesting renewed confidence in crypto as a portfolio diversifier amid economic uncertainties,” Nick Ruck, Director, LVRG Research.
The surge in Spot Bitcoin ETFs follows a week of over $1 billion in outflows, largely triggered by trade tensions between the U.S. and China. Nine of the twelve Bitcoin ETFs recorded inflows, led by BlackRock’s IBIT with $210.9 million, Ark & 21Shares’ ARKB with $162.8 million, and Fidelity’s FBTC with $34.15 million.
Spot Bitcoin ETFs are increasingly being viewed as an alternative to gold for risk-adjusted returns. On the same day Bitcoin ETFs rebounded, spot gold prices fell 5.9%, marking the sharpest single-day decline since 2020.
“The demand for gold has peaked, which will lead investors to seek alternative risk-adjusted opportunities in crypto,” Nick Ruck, LVRG Research.
Analysts describe this movement as an “aggressive catch-up trade” where investors reposition portfolios to include digital assets such as Spot Bitcoin ETFs, especially as global inflation and currency pressures persist.
Meanwhile, Spot Ethereum ETFs also recorded $141.6 million in net inflows, led by Fidelity’s FETH at $59 million, with additional contributions from BlackRock, Grayscale, and VanEck.
Trading activity across Spot Bitcoin ETFs remained robust, with total volume reaching $7.41 billion on Tuesday. These figures align with elevated trading ranges observed throughout October, between $5 billion and $9.78 billion more than double September’s average.
“The surge in monthly trading volumes marks an uptick in institutional engagement, delivering deeper liquidity and stronger risk appetite as traditional investors increasingly allocate to digital assets for yield and hedging opportunities,” Nick Ruck, LVRG Research.
For many institutional players, Spot Bitcoin ETFs now represent a bridge between traditional finance and crypto, offering exposure to digital assets without the custodial complexities of holding Bitcoin directly.
The broader crypto market remained steady over the same 24-hour period, with Bitcoin edging up 0.18% to $108,450 and Ether down 0.19% at $3,869. These modest price movements reflect cautious optimism as capital re-enters crypto-linked financial products.
For crypto investors, the inflow signals improving sentiment and institutional validation. For policy makers, it highlights the growing influence of Spot Bitcoin ETFs in global capital flows. And for the general public, it underscores a continuing transition in investment behavior from traditional hedges like gold to digital, inflation-resistant assets.
As traditional assets face pressure, Spot Bitcoin ETFs appear poised to play an increasingly central role in portfolio diversification, liquidity expansion, and digital wealth preservation strategies worldwide.
