US spot Bitcoin exchange traded funds returned to positive territory on Tuesday, attracting $257.7 million in fresh inflows as Bitcoin recovered to the $65,000 mark. The rebound comes after weeks of sustained outflows and continued institutional selling in late 2025.

Data from SoSoValue shows Tuesday’s inflows were the strongest daily total since early February. The gains reversed Monday’s $203.8 million in redemptions and helped push weekly flows back into the green following five consecutive weeks of net outflows totaling $3.8 billion.

While the uptick offered short term relief, broader sentiment in the crypto market remains fragile.

Fidelity and BlackRock Lead ETF Gains

The bulk of Tuesday’s inflows went to two of the largest issuers in the market. Fidelity Investments led the charge, with its Fidelity Wise Origin Bitcoin Fund attracting nearly $83 million, according to Farside data.

Close behind was BlackRock. The asset manager’s iShares Bitcoin Trust recorded $79 million in inflows, signaling that institutional interest has not disappeared despite recent volatility.

Cumulative net inflows across US spot Bitcoin ETFs remain above $54 billion. Although this figure is down from a peak of more than $62 billion in October 2025, it suggests that a large base of investors continues to hold positions rather than exit entirely.

Assets Under Management Slide Sharply in 2026

Even with Tuesday’s rebound, total assets under management across US spot Bitcoin ETFs have dropped significantly this year. Since the beginning of 2026, AUM has fallen about 30.5 percent, declining from roughly $117 billion to $81.3 billion.

The drop reflects both falling Bitcoin prices and sustained redemptions earlier in the year. Bitcoin is currently trading around $65,202, well below its previous highs, which has weighed on fund valuations and investor confidence.

Analysts estimate that nearly half of Bitcoin’s circulating supply is now underwater, meaning holders paid more for their coins than current market prices. Approximately 9 million BTC, or 45 percent of supply, falls into this category.

Institutions Offloaded 25,000 BTC in Q4 2025

Institutional investors were net sellers in the fourth quarter of 2025. According to James Seyffart, advisers and hedge funds sold a combined 25,000 Bitcoin during the period.

At current prices, that stash would be worth around $1.6 billion. In the context of Bitcoin’s $1.3 trillion market capitalization, the figure represents a relatively small share. Even after the sales, institutions collectively still hold approximately 311,700 BTC.

The selling contributed to downward pressure in late 2025 and set the tone for a cautious start to 2026. Market participants have been closely watching institutional behavior, given the role large investors played in driving Bitcoin’s earlier rally.

From Speculation to Stability

Some industry leaders argue that the current phase is part of a broader transition. Matt Hougan, chief investment officer at Bitwise, said the shifting dynamics reflect Bitcoin’s gradual move toward maturity.

In a post on X, Hougan noted that markets do not shift from full scale speculation to stability overnight. Instead, they pass through stages marked by volatility, profit taking, and repositioning.

For now, the return of inflows into spot ETFs offers a sign that investors are still willing to allocate capital at lower price levels. Whether that marks the beginning of a sustained turnaround or simply a temporary pause in selling pressure remains to be seen.

What is clear is that Bitcoin’s institutional era is evolving. Even as some large holders trim positions, others continue to build exposure through regulated ETF products. The coming months will test whether renewed demand can offset the weight of earlier selling and restore confidence across the market.