Bitcoin ETF Inflows Collapse Despite $105K Spike — What’s Holding Back Investors?

On May 12, 2025, Bitcoin ETFs in the United States reported only $5.2 million in net inflows. This was the lowest level since April 14. The drop came despite a short-term market rally driven by a U.S.–China 90-day tariff relief agreement. Bitcoin rose sharply to $105,819 earlier that day, its highest price in three months. However, the price pulled back after reaching this level. At closing, Bitcoin stood at $102,729. This decline affected institutional activity, leading to minimal net inflows into the Bitcoin ETF market. BlackRock’s IBIT Tops Bitcoin ETF Inflows at $69M Data from Farside Investors confirmed that overall demand for Bitcoin ETFs remained weak, even as spot prices briefly climbed. The low net inflows indicated cautious sentiment, especially below key resistance zones. BlackRock’s iShares Bitcoin Trust (IBIT) recorded the highest daily inflow among Bitcoin ETFs. It added $69.41 million on May 12, increasing its cumulative total to $44.78 billion, based on data from Farside. This made IBIT the strongest performer among all spot Bitcoin ETFs that day. The fund maintained its lead in overall inflows, showing steady accumulation even as broader market inflows slowed. Meanwhile, Grayscale’s Bitcoin Trust (GBTC) posted the largest outflow of any Bitcoin ETF. The fund saw $32.92 million exit during the same session. GBTC’s total historical inflows now stand at $22.95 billion. The gap between IBIT and GBTC reflected contrasting flows. IBIT gained funds, while GBTC lost capital on the same day, highlighting a shift in preference between Bitcoin ETF investors. Bitcoin Price Falls Below $105K After Intraday High Bitcoin price touched $105,819 during intraday trading on May 12. However, it later dropped to $102,367, marking a 2% loss in 24 hours. The pullback started after the price failed to hold above the $105,000 level. That resistance zone appeared to slow market activity. As prices dropped, Bitcoin ETF inflows also declined. The daily total of $5.2 million across all U.S. spot Bitcoin ETFs was the lowest since mid-April. Trading activity increased during the rally but turned cautious after the price pullback. While the move to $105K was quick, it lacked enough support to push ETF inflows higher. Bitcoin Funding Rate Holds Positive as Long Positions Dominate Futures Market Data from Coinglass showed that the Bitcoin funding rate remained consistently positive between May 8 and May 12, despite price fluctuations. The chart uses an open interest (OI)-weighted approach, which means the funding rate is adjusted based on the size of open positions across the market. The funding rate dipped briefly below zero early on May 8, but quickly recovered and maintained an upward curve. From late May 8 through May 12, the funding rate fluctuated between 0.0030% and 0.0120%, indicating that long positions outweighed short positions during this time. The steady positive rate suggests that most traders expected further upside in Bitcoin’s price, even as it pulled back from the $105,819 high on May 12. The rate began to flatten slightly toward the end of May 12, mirroring the price stabilization near $102,000–$103,000. In this context, the OI-weighted funding rate served as a real-time sentiment gauge. Despite intraday volatility, the persistent positive rate signaled that leveraged buyers continued to pay fees to hold long positions, reflecting confidence in short-term price support. Bitcoin Liquidation Heatmap Highlights $105K Risk Zone The latest BTC/USDT liquidation heatmap from Coinglass shows a dense cluster of liquidation levels near the $105,337 price range. This chart covers data from the past 24 hours on Binance Futures. It helps identify where large amounts of leveraged positions may be forced to close. These highlighted yellow and green bands represent areas with high trading volume and leverage concentration. The thicker and brighter the zone, the more traders have open positions around those levels. If Bitcoin moves quickly into such zones, automatic liquidations can follow. Liquidation means that an exchange closes a trader’s position because their margin balance becomes too low. This usually happens in futures trading when the price moves too far against the trader’s bet. In this case, many short positions could be at risk if BTC pushes back toward $105,000. The chart shows several such clusters between $104,000 and $106,000. These levels may act as resistance in the short term, especially if traders continue to hold short contracts. However, if Bitcoin climbs past these zones, a short squeeze could follow. This happens when many shorts are forced to close, buying back BTC and driving the price higher. The vertical axis on the right shows exact BTC price levels. The left color bar shows the amount of potential liquidation volume, peaking at 83.08 million USDT. The deeper the color, the higher the value at that level. At the same time, the live BTC price line in the middle of the chart reveals a sharp decline after touching $105K, followed by sideways movement between $101,800 and $102,500. This suggests the market is pausing before deciding its next move. The heatmap helps traders understand where price volatility could increase. Zones with high liquidation risk usually act as trigger points. If Bitcoin reaches these levels again, fast price changes may occur due to mass position closures.