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. 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. The leading crypto gave gains back after Wednesday’s Iran peace deal news pushed it to a local top of $82,500.
Institutional appetite returns
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 puts or downside protection-is compressing toward neutral, with the one-week skew approaching zero, according to Glassnode.
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. 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, noted that while some institutions hedge ETF exposure with short perpetuals, the net effect remains genuine spot demand that tightens available supply-a sign of market maturity.
Looking ahead
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, assign an 86% chance that Bitcoin's next move could push it to $84,000 rather than $55,000.