Institutions Return with $568M Weekly ETF Inflow
After five consecutive months of institutional selling, demand for U.S. spot Bitcoin ETFs has sharply reversed. Data for the first full week of March 2026 shows these funds recorded $568.45 million in net inflows, building on a $787.31 million gain from the prior week. This marks the first back-to-back weekly inflows since the selling trend began in November 2025. BlackRock’s IBIT was a notable contributor, attracting $46.1 million in a single day, reflecting renewed institutional conviction. The total assets under management across all spot Bitcoin ETFs now stand at approximately $91.83 billion.
The renewed ETF demand coincides with a tightening of available supply. Bitcoin reserves held on cryptocurrency exchanges have fallen by nearly 500,000 BTC since early 2024, with current balances near 2.73 million BTC. This trend suggests a consistent movement of coins into long-term storage or institutional custody, reducing the liquid supply available for sale and creating a more stable market structure.
Short Squeeze Pushes Bitcoin Above $72,000
The price recovery was technically accelerated by a short squeeze in the derivatives market. Following recent price dips, deeply negative funding rates in perpetual futures created an environment where traders betting against the market were forced to buy back their positions, propelling Bitcoin's price above the key $72,000 level. The move was accompanied by a nearly 10% increase in 24-hour trading volume, indicating a surge in trader interest.
Further signals point to strengthening spot demand. The Coinbase Premium, which measures the price difference between Coinbase and other exchanges, turned positive, indicating aggressive buying from U.S. institutions. Simultaneously, on-chain metrics like the Hash Ribbons indicator are approaching a buy signal. This follows a prolonged period of miner capitulation where mining costs exceeded market prices, suggesting that forced selling from miners is now subsiding.
