Spot Bitcoin exchange-traded funds have finally returned to positive territory after enduring five straight weeks of capital withdrawals. Flow data shows that the just-concluded week delivered a strong rebound in investor demand, although the late surge was not enough to fully repair the damage recorded earlier in February.
Investors Pour $787 Million Into Spot Bitcoin ETFs
According to data from SoSoValue, Spot Bitcoin ETFs posted a combined $787.31 million in net inflows during the week, which was the first green weekly print after five consecutive weeks of outflows. The turnaround was mostly facilitated by three straight days of positive flows on Tuesday, Wednesday, and Thursday, which helped tip the balance back into positive territory.
Last week’s numbers and the change in momentum show that institutional and ETF-based investors chose last week to step back into Bitcoin after an extended period of consecutive outflows. However, despite the strong weekly performance, the entire monthly net flow still ended in red due to the depth of withdrawals that occurred earlier in the month. As such, February ultimately closed with a total net outflow of $206.52 million from Spot Bitcoin ETFs.
Spot Bitcoin Weekly Netflows. Source: SoSoValue
The resilience of ETF holders was also highlighted by crypto pundit Nate Geraci on the social media platform X. He noted that investors in Spot Bitcoin ETFs have largely maintained conviction during recent Bitcoin downturns.Â
Geraci’s remarks described the recent withdrawals as modest in the broader context of the asset class’s overall growth. He pointed out that since Bitcoin reached its record high in early October, Spot Bitcoin ETFs have experienced about $6.5 billion in net outflows.
However, he also noted that this figure is small relative to the $55 billion that the funds have attracted since their launch in January 2024. He also referenced the over $1 billion in inflows from Tuesday to Thursday, which is another example of how quickly sentiment can change.
Spot Ethereum ETFs Follow The Recovery
The rebound was not limited to Bitcoin-based funds. Spot Ethereum ETFs also recorded investor interest midweek, breaking what would have become a six-week streak of consecutive outflows.
For the week, Spot Ethereum ETFs finished with a net inflow of $80.46 million. Although smaller in scale compared to Bitcoin’s figures, the inflow is the first broader stabilization in crypto ETF sentiment.
Spot Ethereum Weekly Netflows. Source: SoSoValue
Taken together, the inflows into both Bitcoin and Ethereum ETFs indicate that institutional appetite may be rebuilding after several weeks of consecutive withdrawals. Whether this is the beginning of a sustained recovery or a short-term relief bounce will also depend on broader market conditions and how current geopolitical tensions resolve in the weeks ahead.
Featured image from Unsplash, chart from TradingView
