Bitcoin spot Exchange-Traded Funds (ETFs) have recorded a dramatic $1.7 billion in net inflows over a three-day period from January 13 to 15, 2026, marking a stunning reversal from a net outflow of $681 million in the prior week. The surge was led by BlackRock's IBIT, which alone captured $648 million on January 15, the peak day with total inflows of $843.6 million. This brings cumulative net inflows since the ETFs' 2024 debut to $58.2 billion, with total ETF assets now standing at $128 billion—equivalent to approximately 6.56% of Bitcoin's total market capitalization.
This institutional accumulation is clashing with significant outflows from spot exchanges, which saw $126.52 million leave platforms on January 16, signaling that retail and shorter-term traders are distributing their holdings into the ETF-driven price strength. This divergence has created a market tug-of-war, with institutional demand via ETFs on one side and retail distribution on the other.
Bitcoin's price action remains tightly correlated to these ETF flows. The asset recently rallied from around $89,000 to nearly $98,000 as institutional buying returned. However, the price has since stalled, trading near $95,676 and failing to reclaim the 100-day Exponential Moving Average (EMA) at $95,981 for three consecutive sessions. Analysts note that bulls need a decisive close above $99,500 to shift momentum meaningfully.
The institutional commitment is broadening, with Fidelity's FBTC and other issuers also contributing to the inflows. Major financial institutions are accelerating adoption: Morgan Stanley has filed for Bitcoin, Ethereum, and Solana ETFs, potentially exposing its $8 trillion advisory base to digital assets. Simultaneously, Bank of America is now enabling Merrill Lynch advisors to proactively recommend Bitcoin ETFs to clients, shifting from a passive, client-initiated model.
Analysts highlight that with ETFs now controlling a significant portion of the circulating supply, the potential for a supply squeeze is increasing, particularly as long-term holders refuse to sell. This dynamic is seen as placing a firm floor under Bitcoin's price and making the psychological $100,000 target more attainable.
