The structural demand for Bitcoin is returning through spot ETF funds.

In just eight sessions, about $2.4 billion flowed into US-listed spot Bitcoin funds, marking the longest streak of positive inflows since last March. Notably, this inflow did not coincide with price jumps, indicating that the fundamental driver is not quick speculation, but rather strategic institutional accumulation that is reshaping the market structure from within.

BlackRock topped the scene with inflows of +$278.9 million.

Fidelity followed with +$104.4 million.

Bitwise added +$11.3 million.

Conversely, Grayscale continued its bleed with a negative outflow of -$16.4 million.

What makes these inflows structurally significant?

First, it absorbs the new supply. Miners are pumping around 900 Bitcoin daily (about $95 million), while these funds absorbed the equivalent of forty days of mining production in just eight days. This leaves little room for supply in the open market.

Secondly, the price-setting mechanism is gradually shifting. BlackRock now controls 3.25% of the total circulating supply, meaning a large amount of Bitcoin is held in 'slow hands' that are unlikely to sell under market pressure. These funds are held with custodians like Fidelity and Coinbase Custody, making instant trading more difficult and reducing available liquidity.

Thirdly, the gap between spot and futures prices has narrowed. CME futures margins for two months have dropped to just 4% year-over-year, the lowest in three months. Hedge funds are exploiting this situation by executing directionally neutral arbitrage trades (long ETF/short future), which adds neutral but effective flow to support demand in the spot market.

Structural results are starting to show.

Decrease in volatility: The average realized volatility over 30 days has dropped from 46% to 38%.

Supply choke: Every 'Creation' in the ETF means pulling Bitcoin from the market without a quick return, gradually raising the price floor.

Migration of liquidity from external platforms to regulated products: Investors now prefer regulated tools under the 1940 Act, which enhances market stability and limits random sell-offs.

Conclusion

Institutional demand has returned strongly, but this time through regulated tools that reduce noise and reshape price dynamics by pulling supply and reducing volatility. This does not guarantee a rise, but rather a more resilient market led by long-term wallets.

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