US spot Bitcoin exchange-traded funds recorded $257.7 million in inflows on Tuesday, marking the largest daily inflow since early February and recovering from recent consecutive weeks of net redemptions. This positive movement coincided with a modest Bitcoin price recovery towards $65,000.
Despite the rebound, overall market sentiment remains subdued. Analysts estimate that approximately half of Bitcoin's circulating supply is currently underwater. This is compounded by reports of substantial institutional selling activity during the fourth quarter of 2025.
Fidelity's Wise Origin Bitcoin Fund (FBTC) led the inflows with nearly $83 million, followed by BlackRock's iShares Bitcoin Trust ETF (IBIT) with $79 million.
However, institutional investors, including advisors and hedge funds, reportedly sold a total of 25,000 Bitcoin in Q4 2025. This significant volume, valued at approximately $1.6 billion, represents a small portion of Bitcoin's overall market capitalization. Institutions continue to hold a substantial amount of Bitcoin.
Multiple analysts have also pointed out that nearly 45% of all Bitcoin in circulation is currently valued below its acquisition price. This situation is seen by some experts as a natural phase in Bitcoin's maturation from a speculative asset to a more established one.