Inflows into spot Bitcoin ETFs are being largely driven by long-term positions from traditional market investors.
This suggests that they are committing to the crypto market, not just testing the water, according to a new study.
Unhedged Bitcoin ETF Inflows May Signal Market Maturity
1 July 2025 - 13:11 CEST
Financial services firm Avenir collaborated with blockchain analytics platform Glassnode to analyze capital flows into Bitcoin ETFs, following their emergence in the US.
The report examined Bitcoin’s liquidity profile and uncovered a strong connection between unhedged demand and spot Bitcoin ETF inflows. It suggests that institutional investors are increasingly taking committed, long-term positions.
The trend highlights the growing integration of digital assets into institutional portfolios, as banks and corporations increasingly seek to diversify their exposure to Bitcoin.
Bitcoin as a macro asset
The study further indicates that, through the lens of ETF capital flows, Bitcoin behaves more like a traditional asset, with its price reflecting broader financial and monetary conditions.
Researchers also noted positive correlations between Bitcoin, certain stocks benchmark indices such as the S&P 500 and assets including gold, while Bitcoin’s price tended to decline when the US Dollar Index rose.
Spot Bitcoin ETFs provide institutional investors with regulated, liquid and secure access to
Bitcoin without the complexities of managing digital wallets or directly holding cryptocurrency.
When investors buy shares of a spot Bitcoin ETF, the fund provider must purchase actual Bitcoin to back those shares. The increased demand can encourage Bitcoin to rise, especially during periods of significant inflows.
Questions Remain
These findings may signal growing confidence in Bitcoin’s resilience and the regulatory framework that is being implemented in the US. However, risks persist as correlations can shift rapidly, and Bitcoin’s sensitivity to interest rates, inflation and liquidity cycles may increase as macroeconomic conditions evolve.
For now, the data from this report offers one further proof point to Bitcoin’s emerging role as a macro-driven asset, supported by unhedged ETF inflows and institutional conviction.
