Spot Bitcoin exchange-traded funds recorded more than $1 billion in net inflows over three consecutive trading sessions this week, reversing a multi-week outflow trend as investors bought the recent dip, while participation in DeFi platforms such as Mutuum Finance (MUTM) continues to grow, with more than 19,000 holders reported.

Bitcoin ETF inflows reverse multi-week outflows

US-listed spot Bitcoin ETFs logged approximately $1.02 billion in combined inflows from Tuesday through Thursday, according to SoSoValue data. The strongest single-day performance came on Wednesday, when funds attracted more than $506 million. Market analysts described the shift as renewed dip-buying interest following Bitcoin’s recent decline.

The inflow streak follows five consecutive weeks of net withdrawals, including $2.82 billion in combined outflows during the final two weeks of January. Since Bitcoin’s record high in early October, total ETF outflows have reached roughly $6.5 billion, a figure considered moderate compared to the approximately $55 billion in cumulative inflows recorded since January 2024.

BlackRock’s iShares Bitcoin Trust (IBIT) led the rebound, posting more than $275 million in net inflows on Thursday. While Fidelity’s FBTC and Ark 21Shares’ ARKB recorded outflows, gains in other funds such as Bitwise’s BITB and Grayscale’s BTC offset those declines.

Analysts continue to monitor ETF flows as a measure of institutional sentiment. Some suggest that Bitcoin’s roughly 50% drawdown may be approaching exhaustion, though sustained inflows would likely be required to support broader price stabilization rather than a short-term rebound.

Mutuum Finance (MUTM)

Mutuum Finance is an Ethereum-based decentralized lending and borrowing system. Users do not have to sell their cryptocurrency holdings in order to borrow against collateral or receive yield. For instance, in order to obtain liquidity and maintain exposure to changes in the price of ETH, a user may borrow USDT and deposit ETH as collateral. Interest is paid to lenders who supply assets like USDT or WBTC according to pool utilization.

Over 19,000 holders of Mutuum Finance’s native token, MUTM, which is presently trading at $0.04, are listed. The protocol has raised around $20.6 million so far, according to project disclosures.

Two complimentary markets serve as the foundation for the protocol’s structure:

• Peer-to-Contract (P2C): Through shared liquidity pools, users lend and borrow popular assets like ETH and USDT. Interest rates are calculated algorithmically depending on supply and demand.
• Peer-to-Peer (P2P): Users can create customized lending agreements with flexible terms between counterparties, including for more volatile assets such as PEPE or DOGE.

When assets are deposited into the protocol, mtTokens are minted on a 1:1 basis as proof of deposit. These tokens represent the user’s share in the liquidity pool and accrue yield over time. mtToken holders can also stake within the protocol’s safety module. According to the project model, a portion of protocol-generated fees is allocated to purchasing MUTM tokens from the open market and distributing them to eligible stakers.

Currently running on the Sepolia testnet, the V1 protocol includes liquidity pools, debt tokens that track borrowed principal and interest, a stability factor risk assessment, and an automated liquidator bot that monitors collateral thresholds. Within the testnet environment, users can already test how lending and borrowing work, mint mtTokens, earn interest and staking functions, and observe how mtToken staking operates.

While the current focus remains on improving and expanding the lending protocol, the project’s whitepaper outlines plans for a future overcollateralized stablecoin. The proposed stablecoin would be minted from collateral supplied within Mutuum’s lending protocol, with each token backed by sufficient on-chain assets.

According to the documentation, the stablecoin’s value would be algorithmically aligned with the U.S. dollar through market-driven mechanisms. It would operate as a permissionless and decentralized token on Ethereum. The stablecoin would be created when users deposit collateral above a specified ratio, following a structure similar to the protocol’s existing collateralized borrowing model.

Spot Bitcoin ETF inflows have turned positive after weeks of withdrawals, indicating a return of institutional demand, though sustained buying will be needed to support broader price stabilization. At the same time, Mutuum Finance continues to report fundraising and development progress as it advances toward mainnet.

Disclaimer: This is a paid post and should not be treated as news/advice.

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Author: AMBCrypto Team