Bitcoin Holds Near $72.5K as Spot ETF Inflows Signal Renewed Institutional Demand

Bitcoin traded close to $72,500 on Thursday as steady inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) highlighted renewed institutional interest in the cryptocurrency market. According to CoinDesk market data, the leading digital asset maintained its upward momentum as investors continued allocating funds to newly launched ETF products.

U.S.-listed spot Bitcoin ETFs recorded an additional $155 million in net inflows on Wednesday, extending a streak of consistent institutional buying. Data compiled by SoSoValue shows that ETF allocations have reached roughly $1.47 billion over the past two weeks, representing a sharp turnaround after multiple weeks of outflows earlier this year.

The recent surge suggests institutional demand for Bitcoin ETFs is stabilizing following a weak start to the year. Bloomberg Intelligence data previously reported by CoinDesk indicates that investors have poured approximately $1.7 billion into U.S. spot Bitcoin ETFs since Feb. 24. Market analysts believe these inflows may indicate growing confidence that Bitcoin has found a near-term price floor.

However, some analysts caution that ETF inflows do not always translate into immediate buying pressure in the spot market. Earlier this week, analysts at Bitfinex noted that authorized participants can create and short ETF shares before acquiring the underlying Bitcoin. This process may delay the direct impact of ETF demand on Bitcoin’s market price.

Despite these mechanics, Bitcoin’s resilience amid geopolitical tensions is strengthening its role in global financial markets. Livio Weng, CEO of Bitfire, said the cryptocurrency is increasingly being viewed as a geopolitical hedge rather than simply a risk asset. Unlike gold, Bitcoin operates around the clock and can be transferred across borders instantly, making it attractive for capital movement during periods of economic uncertainty.

Still, on-chain data suggests caution. Blockchain analytics firm Glassnode recently reported that buy-side momentum has weakened. The 30-day moving average of realized profit has dropped roughly 63% since early February, signaling reduced investor profitability.

Additionally, the proportion of Bitcoin supply currently held in profit has declined to around 57%. Historically, this level has been associated with the early stages of deeper bear market conditions. Glassnode also noted that the cost basis for short-term Bitcoin holders sits near $70,000, which could become an important psychological resistance level. If prices approach this level, some traders may choose to exit positions near breakeven, potentially turning rallies into distribution phases.