Spot Bitcoin exchange traded funds have eventually returned to positive territory after enduring five consecutive weeks of capital withdrawals. Flow data shows that the week just ended saw a strong recovery in investor demand, although the late surge was not enough to fully repair the damage suffered earlier in February.
Investors Put $787 Million Into Spot Bitcoin ETFs
According to data from SoSoValue, Spot Bitcoin ETFs posted combined net inflows of $787.31 million during the week, marking the first green weekly print after five straight weeks of outflows. The turnaround was largely made possible by three consecutive days of positive flows on Tuesday, Wednesday and Thursday, turning the balance positive again.
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Last week’s numbers and change in momentum show that institutional and ETF-based investors opted to get back into Bitcoin last week after a longer period of time successive outflow. However, despite the strong weekly performance, the entire monthly net flow still ended in the red due to the volume of withdrawals earlier in the month. As such, February ultimately ended with total net outflows of $206.52 million from Spot Bitcoin ETFs.
Discover Bitcoin weekly net flows. Source: SoSoValue
The resilience of ETF holders was also highlighted by crypto expert Nate Geraci on social media platform
from Geraci comments described the recent withdrawals as modest in the broader context of the overall growth of the asset class. He pointed out that since Bitcoin reached its all-time high in early October, Spot Bitcoin ETFs have experienced net outflows of approximately $6.5 billion.
However, he also noted that this figure is small compared to $55 billion that the funds have attracted since their launch in January 2024. He also referenced the inflow of over $1 billion from Tuesday to Thursday, which is another example of how quickly sentiment can change.
Discover Ethereum ETFs Tracking the Recovery
The recovery was not limited to Bitcoin-based funds. Spot Ethereum ETFs also registered investor interest midweek, ending what would have been a six-week streak of consecutive outflows.
The Spot Ethereum ETFs closed this week with net inflows of $80.46 million. Although smaller in size compared to Bitcoin’s numbers, the inflow is the first broader stabilization in crypto ETF sentiment.
Discover Ethereum’s weekly net flows. Source: SoSoValue
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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 start of a sustained recovery or a short-term rebound will also be the case depend on broader market conditions and how current geopolitical tensions solution in the coming weeks.
Featured image from Unsplash, chart from TradingView