3 min read
U.S. spot Bitcoin ETFs have recorded five consecutive weeks of positive inflows as downside hedges unwind across derivatives markets, signaling a broadening return of institutional demand.
Net inflows for the current week, ending May 6, reached $1.05 billion, bringing the cumulative total across the five-week streak to approximately $3.8 billion, according to SoSoValue data. Total net assets held by U.S. spot ETFs now stand at $108.76 billion—a record.
Bitcoin has dropped 1.3% and is trading at around $81,100, according to CoinGecko data. The leading crypto has given gains back to the market, dropping after Wednesday’s Iran peace deal news pushed it to a local top of $82,500.
Institutions are returning for three identifiable reasons: the expected resolution of U.S.-Iran hostilities, an AI-driven equity rally, and anticipated cryptocurrency legislation in Washington, according to Jeff Mei, COO of BTSE.
“Of these three, the pending passage of the CLARITY Act is most likely to be driving institutional buying as it reduces regulatory hurdles and paves the way for much broader crypto adoption,” Mei told Decrypt.
The inflow streak coincides with a structural shift in derivatives and options positioning.
The 25-delta skew—a measure of the premium traders pay for purchasing puts or bearish bets for downside protection—is compressing toward neutral across tenors, with the one-week skew approaching zero, according to Glassnode’s Thursday report.
After months of persistent put-premium, protection is being unwound rather than added, suggesting an easing of cautious behavior.
Bitcoin has also reclaimed two key on-chain thresholds: the True Market Mean at $78,200 and the Short-Term Holder Cost Basis at $79,100, clearing the average acquisition price of all actively transacted supply in a single leg higher, Glassnode analysts said.
The next major supply zone sits near the Active Realized Price at $85,200.
The ETF inflows carry structural weight even accounting for institutional hedging activity. Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt that while some institutions hedge ETF exposure with short perpetuals to run delta-neutral strategies, the net effect remains genuine spot demand that tightens available supply—a sign of market maturity rather than a dilution of the bullish signal, he added.
Bitcoin has continued to outperform traditional assets despite sustained geopolitical uncertainty, serving as a hedge. Users on prediction market Myriad, owned by Decrypt's parent company Dastan, reflect this optimism by assigning an 86% chance that Bitcoin's next move could push it to $84,000 rather than $55,000.
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