Mizuho Says Crypto May Be Bottoming, Bitcoin ETFs Signal A New Rally - iShares Bitcoin Trust (NASDAQ:IBIT

Bitcoin’s (CRYPTO: BTC) latest rebound may be developing on a healthier foundation than previous crypto rallies, with ETF demand replacing leverage as a key source of buying pressure, according to Mizuho analyst Dan Dolev.

Dolev sees three signs that the crypto market could be approaching a sustained recovery: lower leverage, a potential revival in retail activity and a sharp return of institutional demand through spot ETFs, per Investing.com.

The ETF signal is particularly striking. U.S. spot Bitcoin ETFs attracted roughly $1.9 billion in net inflows last week after recording five consecutive sessions of inflows. BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) led the buying. Separate data put the weekly total at $1.92 billion through Aug. 21.

For investors seeking direct Bitcoin exposure through traditional brokerage accounts, the surge puts funds including IBIT, Fidelity Wise Origin Bitcoin Fund (BATS:FBTC), ARK 21Shares Bitcoin ETF (BATS:ARKB) and Bitwise Bitcoin ETF (NYSE:BITB) back in focus.

ETFs vs. Leverage

The bigger story, however, may be what is not happening.

According to Investing.com, Dolev said that coin-denominated open interest fell to a one-month low following the initial rally and has failed to rebuild meaningfully. That suggests the continuation is being driven more by spot and ETF demand than by leveraged long positions.