Spot Bitcoin $96,782 ETFs listed in the United States halted an eight-day outflow on February 28, recording a net inflow of $94.3 million. This inflow coincided with a partial recovery in Bitcoin’s price.
Flows Towards ETFs
The ARK 21Shares Bitcoin ETF and Fidelity Wise Origin Bitcoin Fund attracted significant attention, with net inflows of $193.7 million and $176 million, respectively. Together, these two products accounted for a combined net inflow of $369.7 million, largely offsetting the $244.6 million outflow recorded in BlackRock’s iShares Bitcoin Trust ETF. Additionally, the Bitwise Bitcoin ETF and Grayscale Bitcoin Mini Trust ETF showed net inflows of $4.6 million and $5.6 million.
In contrast, other financial institutions offering Bitcoin products experienced net inflows of zero, while the VanEck Bitcoin ETF and Grayscale Bitcoin Trust ETF faced net outflows. However, the inflow of $94.3 million on February 28 had a minimal impact compared to the staggering $3.26 billion net outflow that occurred between February 18 and 27.
Market Performance and Expert Opinions
January 10, 2025, marked approximately $300 million in net outflows for spot Bitcoin ETFs, indicating ongoing market uncertainty this year. Market experts provided various insights into these developments.
Matt Hougan, investment director at Bitwise, suggested that the current price range of Bitcoin, between $80,000 and $90,000, represents an optimal buying opportunity. Meanwhile, Jake Chervinsky, chief legal officer at Variant, highlighted the favorable regulatory environment for the crypto sector and noted that increased traditional finance interest could create significant opportunities.
Overall, the inflows and outflows in ETFs reflect strategic movements from investors, despite the market’s volatility. Market participants believe that these trends may serve as an early warning of potential shifts in the financial markets.