Bitcoin rally shifts toward spot ETF inflows

Bitcoin ’s (CRYPTO:BTC) latest rally is gaining a new source of momentum: institutional demand through spot ETF.

Bitcoin climbed more than 23% over the past week to around $77,500 on Friday, while U.S. spot Bitcoin ETFs attracted roughly $1.6 billion in net inflows from Monday through Thursday, their strongest weekly showing of 2026, according to data from The Block cited by The Wall Street Journal.

Thursday alone accounted for about $606 million.

The surge is important because it could signal a shift in the drivers of Bitcoin’s rebound.

From Short Squeeze To ETF Demand The initial rally was heavily fueled by forced buying.

More than $4.3 billion in crypto short positions were liquidated as Bitcoin broke higher, creating a powerful feedback loop of short covering and rising prices.

But ETF flows offer a potentially more durable catalyst.

Standard Chartered analyst Geoff Kendrick said Bitcoin’s recovery has been supported by both short liquidations and recovering spot ETF inflows, according to Cointelegraph.

He now believes his previous $100,000 year-end forecast may be too low, with Bitcoin potentially retesting its $126,000 all-time high before year-end.

Kendrick has not formally replaced the $100,000 target with $126,000.

Instead, he views the record as a level Bitcoin could revisit if the recovery gathers further momentum.

Why ETF Investors Matter The renewed demand is particularly significant because spot Bitcoin ETFs provide institutions and traditional investors with a regulated, exchange-traded route to Bitcoin exposure.

BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT ) has been a major beneficiary of the recent resurgence.

On Tuesday, IBIT accounted for roughly 76% of the day’s $189.3 million in U.S. spot Bitcoin ETF inflows, according to data cited by Cointribune.

That concentration makes IBIT an important ETF to watch if the latest inflow trend continues.

The $126K Test Bitcoin’s move above the $76,000 level marks a significant technical recovery after months of being trapped between roughly $60,000 and $65,000.

The next challenge is whether ETF demand can replace short covering as the primary source of buying pressure.

If flows remain strong, the argument for a sustained institutional-led rally strengthens.

Standard Chartered sees potential acceleration after Oct 6, the date Bitcoin reached its previous record last year, per Cointelegraph.

At roughly $77,500, Bitcoin would still need to gain about 63% to reach $126,000.

That makes the ETF flows the key number to watch: the short squeeze can push Bitcoin higher quickly, but sustained ETF demand may determine whether the rally has enough fuel to reach a new record.

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