US-listed spot Bitcoin exchange-traded funds (ETFs) recorded $1.02 billion in net inflows from February 24 through February 26, according to SoSoValue data. February 25 accounted for the largest single-day total at $506.51 million.
This inflow reverses a five-week streak of net outflows, which saw $2.82 billion withdrawn in the final two weeks of January alone. BlackRock’s iShares Bitcoin Trust (IBIT) led the inflows, posting $275.82 million on February 26, while other funds, including Bitwise’s BITB and Grayscale’s BTC also contributed positively.
Outflows from Fidelity’s FBTC and Ark 21Shares’ ARKB were outweighed by these gains, underscoring a broad-based recovery in institutional demand. Analysts attribute the trend to investors seeking to “buy the dip” amid Bitcoin’s price consolidation near $66,871, down significantly from the early October peak above $125,000.
Positive Momentum Extends to Altcoin ETFs
Spot Ether ETFs recorded approximately $173 million in net inflows over the same period, while Solana funds added $35 million. XRP ETFs contributed a smaller $7 million, reflecting a more cautious investor stance on smaller-cap digital assets.
The inflows suggest that institutional and retail participants are selectively deploying capital in digital assets, favoring established tokens with deeper liquidity. Analysts note that ETF activity often precedes broader market stabilization, as these products channel significant capital in a regulated manner.
Technical indicators such as oversold levels and declining selling pressure support the view that inflows may signal a short-term reprieve rather than a sustained bull market, but they are nonetheless viewed as a stabilizing factor in a volatile environment.
Market Context and Investor Implications
Bitcoin has experienced a roughly 50% drawdown from its October highs, testing investor confidence across both retail and institutional segments.
Despite this, the $1 billion inflow demonstrates continued appetite for regulated exposure to crypto assets. ETF participation provides a mechanism for large investors to enter positions without directly holding Bitcoin, potentially mitigating risk while maintaining liquidity. Analysts caution that inflows alone do not guarantee a rebound, emphasizing that macroeconomic factors and market sentiment will continue to influence prices.
Nevertheless, the recent ETF trend reinforces the role of structured investment products in shaping investor behavior and liquidity dynamics, particularly during periods of drawdowns and heightened volatility. The ongoing institutional engagement reflects growing comfort with regulatory oversight and the use of ETFs as a mainstream access point for crypto markets.
