ETFs See $203.9M Weekly Inflows Despite “Sluggish” Bitcoin

• Bitcoin ETFs registered $203.9 million inflows in early February despite a stagnant market
• February 4th marked a record $340 million inflows in a single day
• Blackrock’s Bitcoin ETF added over $249 million in a single day, highlighting its strong performance

Bitcoin exchange-traded funds registered significant net profits throughout the week, despite a stagnant market in the cryptocurrency sphere.

During the first week of February, the collective of Bitcoin ETFs reported $203.9 million inflows, continuing to showcase positive performance in the market. February 4th stood out as the day with the most deposits, with $340 million inflows in a single day. 

The preceding day, Monday, Feb 3rd, Spot Bitcoin funds registered its worst performance of the week. Overall, the combination of all ETFs saw $234.4 million withdrawals on that date. 

Blackrock (IBIT) stood out as the best-performing ETF in a single-day period. On Tuesday, the funds added over $249 million in Bitcoin. 

While these ETFs are still performing well, inflows have slowed down when compared to the previous weeks. In the last week of January, these funds added $561 million in BTC, while in the previous week, they registered a massive $1.5 billion net deposits into the fund. 

Bitcoin’s Sluggish Behavior May Have Affected ETFs

The last two weeks may be considered the first truly bearish period since the November 2024 rally. Boosted by uncertainty regarding a potential trade war between the U.S. and key trading partners like Mexico, Canada, and China, Bitcoin and nearly all of the mainstream cryptocurrencies have halted their upward trajectory. 

The reason for that is that investors are anticipating a potential reversal in behavior by the Fed, which up until last month had been cutting interest rates. With the economic uncertainty and the potential for imports to become more costly, the likelihood of inflation getting out of control also grows. 

Since then, Bitcoin has fallen from its ATH $109,000 zone — losing 11.91% of its value while at it. Currently, the world’s largest crypto trades at $96,482, down 4.15% over the past week. 

Even more worrying, perhaps, is the fact that buyers are getting completely dominated in the 1-day chart. Over the past 4 days, buyers have attempted to regain the $100,000 zone, but were immediately denied by bears. 

The future may look uncertain but there is certainly no reason to throw in the towel. Despite the negative results over the past few weeks, upcoming developments such as the Bitcoin Strategic Reserve could help revert the trend if it comes to fruition.

The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more