After playing a major role in pushing Bitcoin to new local highs, U.S. spot Bitcoin ETFs are now experiencing a sharp drop in daily net inflows. A shift that crypto analytics firm Glassnode says could signal a potential turning point in the ongoing rally.
Institutional Demand Cooled Down
According to Glassnodeโs latest weekly report, daily ETF inflows have cooled significantly, dropping to just $58 million per day.
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Back in late April, daily ETF inflows peaked at $389 million, coinciding with a surge in spot market activity and renewed investor optimism. This pullback may signal waning institutional momentum, even as Bitcoinโs price hovers around $103K, the analysts say.
Glassnode notes that Bitcoinโs latest push toward all-time highs has been predominantly powered by spot market demand, rather than speculative activity in the derivatives market. The majority of buying pressure has come through direct purchases on major crypto exchanges and ETF channels, not through leveraged futures or options bets.
Profit Taking Has Started
Meanwhile, profit-taking by recent BTC investors has surged well above the statistical average, according to Glassnode.
They note that short-term Bitcoin holders (those who bought within the last 155 days) are now seeing their positions in profit. Recently, the level of profit realized by this group has jumped to around 3 standard deviations above the 90-day average, a natural behavior during rallies, as some investors choose to take gains.
However, in past strong rallies (such as those leading to all-time highs), this metric has climbed even higher, sometimes exceeding 5 standard deviations. This suggests that much stronger selling pressure is typically needed to truly exhaust demand, Glassnode says.
Derivatives Markets Lag Behind
According to analysts at Glassnode, the derivatives market is still catching up to the strong momentum seen in the spot Bitcoin market.
Open interest in perpetual futures has fallen by 10%, suggesting that a recent short squeeze likely forced out bearish traders. At the same time, funding rates remain neutral, and thereโs little evidence of excessive leverage on the long side, indicating that speculation hasnโt yet reached risky levels.
In the options market, signs of growing optimism are emerging. The 1-month 25 Delta Skew has dropped to -6.1%, meaning call options are now priced higher than puts, typically a signal of bullish sentiment among traders.
Why This Matters
The cooling of ETF inflows and rising profit-taking suggest that the strong upward momentum in Bitcoin may be entering a more cautious phase. Institutional buyers who were once driving demand may be stepping back, while retail traders take profits and the derivatives market slowly adjusts.
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