Bitcoin surpasses $72,000 as ETFs attract $155 million, continuing a two-week trend of inflows.

U.S. spot bitcoin ETFs received an additional $155 million on Wednesday, maintaining a two-week trend of institutional inflows even as Glassnode cautions that the demand remains delicate.

What to know:

• Bitcoin traded around $72,500 as U.S. spot bitcoin ETFs recorded approximately $155 million in net inflows on Wednesday, extending a two-week streak totaling about $1.47 billion in new investments.
• On-chain analysis from Glassnode indicates a decline in buy-side momentum, with realized profits decreasing significantly and only about 57 percent of the bitcoin supply currently profitable, a figure historically associated with the onset of bear market conditions.
• While the underlying demand appears fragile and there are caveats regarding how ETF flows convert into spot purchases, institutional inflows are stabilizing and a growing number of investors perceive bitcoin as a 24/7, cross-border geopolitical hedge rather than merely a high-risk asset.

Bitcoin maintained its upward momentum on Thursday amid indications of ongoing interest in spot exchange-traded funds (ETFs).

The leading cryptocurrency was priced around $72,500 on Thursday, according to CoinDesk market data. The U.S.-listed spot ETFs attracted another $155 million in net inflows on Wednesday, extending a recent trend of institutional purchases that has contributed to price increases following a period of low activity.

The new inflows elevate total allocations to approximately $1.47 billion over the past two weeks, based on data compiled by SoSoValue, representing a significant turnaround after several weeks of outflows earlier this year.

Institutional interest through ETFs has started to stabilize following a challenging beginning to the year. Investors have invested around $1.7 billion into U.S. spot bitcoin ETFs since February 24, according to data from Bloomberg Intelligence previously shared by CoinDesk, indicating that some investors are becoming more confident that the market may have established at least a short-term support level.

Earlier this week, analysts at Bitfinex warned that ETF inflows do not necessarily lead to immediate buying pressure in the spot market. Authorized participants can create and short ETF shares before sourcing the underlying bitcoin, which can delay the effects of these flows on prices.

Nonetheless, the inflows into spot ETFs and bitcoin’s recent strength amid geopolitical uncertainties suggest an increasing macro significance of the cryptocurrency, according to some market observers.

“Bitcoin is being increasingly revalued by the market as a geopolitical hedge rather than merely a risk asset,” stated Livio Weng, CEO of Bitfire. “In contrast to gold, bitcoin operates 24/7 and can be transferred across borders instantly, making it an ideal refuge for capital during times of geopolitical unrest.”

On-chain data calls for caution

Despite the increase in inflows, underlying demand indicators remain fragile, according to Glassnode. In a recent report, the company noted that buy-side momentum has weakened considerably, with the 30-day moving average of realized profit declining by approximately 63% since early February.

The percentage of bitcoin supply held at a profit has also decreased to around 57%, a level historically linked to the initial phases of deeper bear market conditions. Glassnode further mentioned that the cost basis of short-term holders near $70,000 could serve as a significant behavioral barrier, potentially turning price rallies into distribution zones as traders exit positions near breakeven.