U.S. spot Bitcoin ETFs have experienced five consecutive weeks of positive inflows as downside hedges unwind in the derivatives markets, indicating a renewed surge in institutional demand.
For the week concluding on May 6, net inflows amounted to $1.05 billion, totaling around $3.8 billion over the five-week period, according to data from SoSoValuedata. U.S. spot ETFs now hold total net assets of a record $108.76 billion.
Bitcoin has decreased by 1.3%, currently trading near $81,100 as per CoinGecko data. The cryptocurrency’s recent gains were retracted following the Iran peace deal announcement on Wednesday, which had briefly pushed it to a local high of $82,500.
Institutions are motivated by three key factors: anticipated resolution of U.S.-Iran tensions, an AI-driven equity rally, and expected cryptocurrency legislation in Washington, Jeff Mei, COO of BTSE, stated. “The likely passage of the CLARITY Act is probably driving institutional buying as it eases regulatory barriers and fosters broader crypto adoption,” he told Decrypt.
This inflow streak aligns with a structural change in derivatives and options positioning. The 25-delta skew, which indicates the premium for purchasing puts or bearish bets for downside protection, is neutralizing across tenors, reaching near zero for one week according to Glassnode’s Thursday report.
Following a prolonged period of put-premium, protection measures are being unwound instead of added, signaling a reduction in cautious behavior.
Bitcoin has reclaimed two key on-chain markers: the True Market Mean at $78,200 and the Short-Term Holder Cost Basis at $79,100, surpassing the average acquisition price for actively transacted supplies, as reported by Glassnode analysts. The subsequent significant supply area is near the Active Realized Price at $85,200.
Despite institutional hedging activities, ETF inflows maintain structural significance. Andri Fauzan Adziima, research lead at Bitrue Research Institute, noted to Decrypt that while some institutions hedge ETF exposure with short perpetuals for delta-neutral strategies, the net effect still reflects genuine spot demand, tightening supply and indicating market maturity rather than diluting bullish signals.
In spite of ongoing geopolitical tensions, Bitcoin continues outperforming traditional assets as a hedge. Users on Myriad, owned by Decrypt’s parent company Dastan, express optimism with an 86% probability assigned to Bitcoin reaching $84,000 over $55,000 in its next move.