Bitcoin ETF Inflows Stutter Despite $2T Market Cap Milestone

New demand from retail investors is rising, but key institutional signals suggest a potential cooling in short-term momentum

Bitcoin exchange-traded funds (ETFs) recorded just $5 million in net inflows on Monday, marking the lowest single-day total since April 14.

The muted ETF activity comes despite a sharp rally that lifted Bitcoin to a three-month high of $105,819 before closing at $102,729 due to profit-taking.

While the news of easing trade tensions initially boosted market optimism, institutional investors appeared hesitant to increase their ETF exposure at current levels.

BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:IBIT) saw the largest inflow on the day, attracting $69.41 million, according to Farside.

Grayscale's Bitcoin Trust ETF (NYSE:GBTC), however, saw a $32.92 million net outflow, reflecting mixed institutional sentiment.

Institutional Enthusiasm Stagnates Despite BTC Breakout

The $5.2 million total net inflow was notable not only for its size but for its timing. Monday’s surge was fueled by a 90-day tariff pause between the U.S. and China.

These policy shifts typically catalyze cross-asset rallies. Yet Bitcoin ETF demand failed to keep pace with the market move, pointing to a possible disconnect between price action and capital flow.

This hesitation may stem from technical resistance and psychological barriers. Liquidation heatmaps shared by Coinglass also show concentrated short positions near $105,337, hinting that investors may be wary of further upside unless a clean breakout occurs.

Despite the day’s weakness, BlackRock’s IBIT has now accrued a historical net inflow of $44.78 billion, underscoring continued long-term confidence.

Grayscale’s GBTC, in contrast, stands at $22.95 billion in historical inflows, reflecting outflows tied to fee differentials and structural shifts following its ETF conversion.

Bitcoin’s Market Cap Hits $2T, But Momentum Traders Stay on the Sidelines

The broader market story tells a tale of divergence. Bitcoin’s market capitalization surpassed $2 trillion last week, which is the highest since January 31.

However, on-chain data from Glassnode shows that while first-time buyers remain active, momentum traders have largely pulled back.

“BTC Supply Mapping shows sustained strength in new demand,” Glassnode wrote yesterday on X.

“First-Time Buyers RSI has held at 100 all week,” the company added, signaling strong inflows from retail wallets engaging with Bitcoin for the first time.

Tweet-Glassnode

This metric measures relative strength in activity among these new participants over a 30-day window. A value of 100 indicates sustained peak activity, suggesting persistent engagement from newcomers to the market.

In contrast, the same data shows that momentum buyers, which typically enter positions once an uptrend is established, have an RSI of around 11, signaling minimal participation.

Consolidation Risks Rise as Investor Behavior Splits

While Bitcoin’s recent rally has rekindled optimism, the data suggests that institutional capital is not yet fully committed to this leg of the cycle

Instead, the market may be entering a phase of digestion, where strong retail inflows are offset by larger players taking profits or waiting for more convincing macro signals.

At the time of writing, Bitcoin trades just above $103,000, with funding rates still positive and bullish sentiment intact among leveraged retail participants.

But without renewed ETF demand and broader momentum participation, analysts warn that the $105,000 resistance may continue to act as a ceiling.

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