U.S. spot Bitcoin ETFs recorded more than $506 million in daily inflows yesterday, February 25, a figure last seen more than three weeks ago, on February 2.
The fresh capital has brought the overall weekly inflows past $760 million, according to data tracked by SoSoValue and retrieved by Finbold at the time of writing.
BlackRock alone added $297 million, once again demonstrating its dominance in the sphere. For comparison, Grayscale, the second-biggest gainer, posted a positive net change of just above $102 million, nearly three times less than its competitor.
Bitcoin ETFs start to recover, but long-term success is not guaranteed
At the same time, the broader crypto market is likewise seeing a notable 6.5% uptick, regaining roughly $140 billion in market capitalization over the past twenty-four hours, going up from $2.21 trillion to $2.35 trillion, as per CoinMarketCap.
Bitcoin (BTC) itself has gained nearly 3%, trading at $68,000 at press time, but it is still unclear whether the generally positive vibes will mark the start of a genuine renewal of institutional demand.
For instance, Eric Balchunas, the Senior ETF Analyst at Bloomberg, argued in a post on X that while a positive net change was desperately needed, we might still be witnessing nothing more than a ‘dead cat bounce:’
“Half a bil into bitcoin ETFs yesterday, biggest day in a while, +$750m over past two days, right as obituaries were being published. They needed it too, like a hitter in a slump going yard. YTD is now under $2b in outflows. Unclear still tho if this is legit start to rebound or dead cat bounce,” Balchunas wrote.
Still, should inflows persist at this pace, ETFs may be on track to post their first net-positive week in over a month. For a tactical rebound to evolve into structural demand, however, macro conditions will indeed need to do their part too.
For instance, lower volatility, steady Treasury yields, and resilient risk appetite could help translate opportunistic buying into longer-term capital allocation. For now, the half a billion in daily inflow stands as a mere indication that institutional investors are cautiously re-engaging after weeks of restraint, not that there’s a drastic change on the horizon.
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