Bitcoin Climbs Above $64K as Coinbase Premium Improves Despite ETF Outflows

Bitcoin continued its upward momentum on Friday, climbing above the $64,000 mark after gaining more than 1% over the past 24 hours. The latest advance comes as the Coinbase Premium—a key indicator comparing Bitcoin prices on Coinbase and Binance—showed a notable improvement, signaling healthier demand from U.S. investors.

Earlier this month, the Coinbase Premium sat near negative 150, indicating Bitcoin was trading at a significant discount on Coinbase compared to Binance. That gap has since narrowed to around negative 40, coinciding with Bitcoin's rebound from roughly $58,000 to above $64,000. A shrinking discount is generally viewed as a sign that buying activity from U.S.-based traders is recovering.

Despite the positive price action, institutional investment flows painted a different picture. According to SoSoValue, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net outflows of approximately $95 million on Thursday, while spot Ether ETFs posted $52 million in net withdrawals, bringing an end to a five-session streak of positive inflows.

Among Bitcoin funds, Fidelity's FBTC led the declines with roughly $63 million exiting the fund, followed by ARKB, which lost around $40 million. BlackRock's IBIT finished the day with no net inflows or outflows, while VanEck's HODL and Morgan Stanley's MSBT were the only Bitcoin ETFs to attract fresh capital. Total assets managed by U.S. spot Bitcoin ETFs remain close to $77 billion.

Ethereum ETFs also experienced broad-based selling pressure. Fidelity's FETH saw the largest withdrawal at approximately $34 million, while BlackRock's ETHA lost around $13 million. Other Ether funds also ended the day in negative territory, with none reporting positive inflows. Combined assets across U.S. spot Ether ETFs continue to hover near $9 billion.

The ETF weakness contrasted with the strength in the broader crypto market. Bitcoin gained roughly 3.5% on Friday and is up more than 4% for the week, fully recovering losses triggered by recent geopolitical concerns after President Donald Trump warned of a possible escalation in strikes involving Iran.

Ethereum also moved higher, adding around 2.6% to trade near $1,760.

Part of the market's optimism appeared to stem from Asia, where South Korea's Kospi index surged 4% amid renewed enthusiasm surrounding artificial intelligence investments. Additional positive sentiment came after chipmaker SK Hynix announced a $26.5 billion American depositary share offering, boosting confidence across global risk assets.

While institutional investors have largely remained on the sidelines throughout the past month, Bitcoin has continued to hold within a broad trading range between approximately $59,000 and $66,000. The latest rally suggests improving spot demand may be helping the market regain momentum, even as ETF flows remain mixed.