Bitcoin exchange-traded funds (ETFs) have finally witnessed a positive momentum after a record streak of losses. Following eight consecutive days of redemptions, Bitcoin ETFs witnessed an inflow of $94.3 million on February 28, providing the market with a much-needed and minor boost. This inflow came as Bitcoin’s price attempted to recover, rising toward $85,000.
ARK 21Shares and Fidelity Lead the Gains
Among all Bitcoin ETFs, the ARK 21Shares Bitcoin ETF (ARKB) and Fidelity Wise Origin Bitcoin Fund (FBTC) stood out with massive inflows. ARKB received $193.7 million, while FBTC gained $176 million, bringing their combined total to $369.7 million in fresh investments.
These gains were significant because they offset the $244.6 million in losses from BlackRock’s iShares Bitcoin Trust ETF. Other ETFs such as the Bitwise Bitcoin ETF and the Grayscale Bitcoin Mini Trust ETF also have positive numbers, adding $4.6 million and $5.6 million, respectively.
#WenMoonWeekly – 24 Feb – 02 Mar 2025 📅
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📰 Weekly Recap:
– Bitcoin cratered from $94K to a $78K low—hit by $956M in ETF outflows, tariff fears, and $5B+ in liquidations, yet late-week ETF inflows ($94.34M) hinted at a rebound 📉 #BitcoinCrash #PriceVolatility
– Trump dropped a…
Not all Bitcoin ETFs Rebounded
Whereas Fidelity and 21Shares ARK 21Shares enjoyed the day, there weren’t a majority of bitcoin ETFs on a similar stroke. Some major players such as those managed by Invesco, Franklin, Valkyrie, and WisdomTree reported having zero inflows. Furthermore, VanEck’s Bitcoin ETF and Grayscale’s Bitcoin Trust ETF (GBTC) both persisted in undergoing outflows and hence demonstrate investor hesitance.
This dual performance marks the volatility in the Bitcoin market, with some investors coming back and others lagging behind.
Bitcoin Price Decline and Recovery
The latest inflow stabilized the Bitcoin price, but the market is slowly recovering from a massive sell-off. During February 18-27, investors pulled $3.26 billion worth of Bitcoin ETFs. The bottom was on February 25, when over $1.13 billion was pulled—record single-day outflow.
These huge sell-offs caused Bitcoin’s price to drop 17.6% to a four-month low of $78,940. But after the recent ETF inflows, Bitcoin managed to bounce back to $86,165, showing some rebound.
Is This the Right Time to Invest?
Despite the recent troubles in the market, some analysts feel that this may be a fantastic time for investors. Matt Hougan, Bitwise Chief Investment Officer, and Jake Chervinsky, Variant Chief Legal Officer, contend that the situation is such that long-term Bitcoin investors might benefit from it in the future.
They cite a friendlier regulatory landscape for crypto and growing interest from big financial institutions (TradFi) as indications that Bitcoin might experience more robust growth in the future.
Most investors are now closely observing to determine if Bitcoin ETFs keep drawing in more funds, which may serve to drive the price up.
The market for Bitcoin is still volatile, but the recent inflow indicates that some investors remain optimistic about its future. Will this continue, or will outflows resume? The next few weeks will be critical for the crypto market.
