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Spot Bitcoin ETFs attract heavy inflows as BTC retakes $68K
US spot Bitcoin funds extended their rebound Wednesday as BTC reclaimed $68,000, drawing $506.5 million in inflows — the largest single-day total since February 2. This fresh demand lifts weekly ETF inflows toward a potential first positive week after five straight weeks of outflows totaling about $3.8 billion.
Daily and weekly flow dynamics
The latest SoSoValue metrics show weekly inflows now sitting at $560.4 million, signaling a potential reversal after a heavy February sell-off that erased roughly $20 billion in net assets from U.S. spot Bitcoin ETFs. Two consecutive days of positive flows point to renewed investor interest in ETF exposure to BTC price moves.
Weekly flows in US spot Bitcoin ETFs since Jan. 2, 2026.
Which ETFs led the comeback?
BlackRock’s iShares Bitcoin Trust (IBIT) captured the lion’s share of the inflows, attracting $297.4 million on the day, per Farside data. Bitwise’s BITB and Fidelity’s FBTC followed with $39.4 million and $30.1 million, respectively. ETF trading volumes rebounded above $4.3 billion — the highest daily turnover since Feb. 9 — underscoring the return of liquidity to the U.S. spot ETF market.
Spot Bitcoin ETF flows by issuer on Feb. 23–25, 2026.
Market-structure debate: authorized participants and price discovery
Concerns about “paper Bitcoin”
The inflows arrive amid renewed debate over how ETF mechanics and major market makers influence BTC price discovery. Critics and some analysts worry about “paper Bitcoin” — positions taken in derivatives or ETFs without actual spot purchases — and whether these practices mute true spot-market signals.
Jane Street and the wider implications
Rumors and social-media discussion have singled out large market-making firms like Jane Street following a lawsuit involving Terraform Labs’ administrator. Allegations argue that derivatives exposure and authorized participant (AP) flows could distort prices. Industry voices including Bitwise adviser Jeff Park say the issue is nuanced: APs may not be directly suppressing BTC prices, but structural aspects of how ETF creation/redemption works can affect price discovery in ways many investors don’t fully appreciate.
What this means for investors
Short-term, renewed ETF inflows and rising trading volumes can support BTC price momentum as more capital routes into regulated spot products. Long-term, questions about transparency, market integrity and the interplay between spot holdings and synthetic exposure remain relevant. Incidents like the accidental distribution of assets at South Korea’s Bithumb exchange — where 620,000 BTC were mistakenly allocated — have intensified scrutiny of custody, clearing, and reporting standards.
Key takeaways and next steps
- Bitcoin ETFs posted their biggest daily inflow since early February, led by BlackRock’s IBIT.
- Weekly flows may return to positive territory after five weeks of outflows.
- Debate over authorized participants, derivatives exposure, and “paper Bitcoin” persists; investors should monitor ETF flows, trading volumes, and regulatory updates for signals about market structure and transparency.
For crypto traders and institutional allocators, ETF flow data, on-chain metrics, and developments in market-maker behavior are essential indicators to watch as BTC price discovery continues to evolve.
Source: cointelegraph
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