Bitcoin Retreats as U.S. Spot ETF Inflows Surge Amid Low Volatility and Regulatory Uncertainty

Bitcoin volatility hits its lowest since October as U.S. spot ETFs post $1.81B inflows, but regulatory delays fuel concerns of a possible crypto winter.

BTC

Summary

Bitcoin’s annualized 30-day implied volatility dropped below 40%, marking the lowest level since Oct. 5. U.S. spot Bitcoin ETFs recorded $1.81 billion in weekly net inflows, the highest since October, signaling strong institutional activity. Despite the positive ETF momentum, analysts cautioned that delays in passing a U.S. cryptocurrency market structure bill could lead to a prolonged downturn, often referred to as a crypto winter.

Terms & Concepts
  • Spot Bitcoin ETF: An exchange-traded fund that directly holds Bitcoin, allowing investors exposure to its market price without owning the asset.
  • Cryptocurrency market structure bill: Legislative proposal aimed at defining regulations and frameworks governing cryptocurrency trading and operations in a given jurisdiction.
  • Implied volatility: A metric reflecting the market’s expectations for future volatility of an asset, derived from options prices.