Despite the cryptocurrency market largely remaining muted in late February, BlackRock posted a significant accumulation of Bitcoin (BTC), offsetting recent months of outflows.
In this context, the world’s largest investment manager’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), recorded total net inflows of approximately $503 million between February 23 and February 27.
While flows were uneven throughout the week, strong midweek buying more than offset early and late-week outflows.
The largest purchase occurred on February 25, when IBIT attracted about $297.4 million in fresh capital. That was followed by another sizable inflow of roughly $275.8 million on February 26. Earlier in the week, on February 24, the fund added approximately $78.9 million. These three sessions accounted for the bulk of the weekly accumulation.
However, the week was not without selling pressure. On February 23, IBIT posted an outflow of about $116.4 million, and on February 27, the fund saw another $32.7 million exit. Even so, the cumulative effect of the stronger inflow days left BlackRock with a net positive position exceeding $0.5 billion for the week.
Bitcoin ETF recovers
Notably, the broader U.S. spot Bitcoin ETF market reflected notable volatility over the same period. Total net flows across all issuers were negative on February 23, with combined outflows of roughly $203.8 million.
Sentiment shifted sharply on February 24 and 25, when the market recorded strong aggregate inflows of approximately $257.7 million and $506.6 million, respectively. February 26 remained positive with around $254.4 million in net inflows before turning negative again on February 27, when total outflows reached about $27.5 million.
Overall, in the last week of February, spot Bitcoin ETFs staged a notable recovery, recording over $1.1 billion in net inflows and marking their strongest weekly performance in six weeks.
The surge reversed a prolonged streak of outflows, as the funds had experienced five consecutive weeks of net redemptions totaling around $3.8 billion through mid-February.
Industry observers note that ETF flows continue to exert significant influence on Bitcoin’s price trajectory. Some quantitative models suggest BTC is trading at a substantial discount to flow-implied fair value levels near $95,000, potentially setting the stage for upside if inflows are sustained.
Meanwhile, Bitcoin continues to trade in volatility, attempting to hold the $60,000 support zone. As of press time, the cryptocurrency was valued at $63,944, down over 6% in the last 24 hours. On the weekly timeline, BTC was also down 6%.
Indeed, the current Bitcoin sell-off is a reaction by investors following renewed conflict in the Middle East after the United States and Israel launched strikes against Iran.
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