U.S. spot bitcoin exchange-traded funds recorded $506.5 million in net inflows on Feb. 25, the largest single-day total in three weeks, reversing a stretch of heavy redemptions that had fueled doubts about institutional demand.
The surge followed $257.7 million in inflows on Feb. 24, bringing the two-day total to more than $750 million. The rebound came after five consecutive weeks of outflows totaling about $3.8 billion. Year to date, net flows are now just under $2 billion in outflows.
BlackRock’s iShares Bitcoin Trust (IBIT) led Tuesday’s gains with $297.4 million in inflows, accounting for nearly 60% of the daily total. Grayscale’s Bitcoin Trust (GBTC) posted $102.5 million in inflows, marking a rare positive session for the fund, which has seen about $25.9 billion in cumulative net outflows since converting to an ETF structure.
Bitwise Asset Management’s BITB added $39.4 million, while Fidelity Investments’s FBTC brought in $30.1 million. Invesco’s BTCO and VanEck’s HODL also recorded net buying. None of the 11 active spot bitcoin ETFs posted outflows on the day.
Bitcoin rose near $70,000 during the session, climbing more than 7% from its weekly low below $64,000. The move coincided with renewed ETF demand and strength in broader risk assets.
At the time of writing, Bitcoin is trading near $67,000.
Bitcoin’s foundation looks strong
The inflows mark the highest daily total in three weeks and suggest institutional buyers have returned after stepping back through much of late January and February. If inflows persist through the end of the week, spot bitcoin ETFs could post their first weekly net gain in more than a month.
Despite persistent pessimism, BTC’s institutional infrastructure remains intact, unlike in 2022, when FTX, Celsius, and others collapsed.
ETF outflows have largely stabilized, long-term holders’ buying capacity has grown, and major US banks continue building crypto products. With a shrinking tradable supply and solid market plumbing, analysts see current weakness as a temporary confidence crisis, with some projecting BTC could reach $150,000 this year.
BTC pulled back this morning, dropping to around $67,000 after approaching $70,000 yesterday. The decline comes after a strong session for crypto-related stocks, which saw solid gains.
The iShares Bitcoin Trust ETF (NASDAQ: IBIT) fell $1.19, or 3.02%, to $38.04 today. IBIT is a financial product that tracks BTC’s price, giving investors exposure to BTC without directly owning it.