Wall Street is back in risk-on mode.
U.S. spot Bitcoin ETFs absorbed a massive $754 million on Tuesday, marking the highest single-day net inflow since October. The capital injection powered Bitcoin (BTC) past $96,000, reversing weeks of stagnant price action and signaling a decisive institutional rotation back into crypto assets.
Data confirms the surge was driven by softer U.S. inflation data, which greased the wheels for speculative capital.
The Breakdown: Fidelity Takes the Crown
In a rare upset, Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the pack, scooping up $351 million in a single session. This outpaced BlackRock’s IBIT and Bitwise’s BITB, suggesting a broadening of demand beyond the usual market leader. The inflows were not isolated to Bitcoin; Ethereum ETFs also recorded $130 million in net positive flows, indicating a wider appetite for digital asset exposure.
The move reverses a recent trend of muted or negative flows, suggesting a strong bullish shift in market sentiment as investors rotate back into risk assets.
Market Reaction
Bitcoin traded as high as $96,000 following the print, erasing the bearish market structure that plagued early January. With total ETF assets now nearing $123 billion, the liquidity squeeze on OTC desks is becoming palpable. If inflows sustain at this pace ($500M+ daily), supply shock dynamics could force a re-test of the $100,000 psychological barrier before month-end.
