Bitcoin ETF surges $1 billion in three days, investors buy the dip

BTC-2.91%
ETH-4.44%
SOL-4.53%
XRP-5.04%

On February 27, it was reported that spot Bitcoin ETFs attracted over $1 billion in inflows within three days, indicating that investors remain actively deploying capital when Bitcoin prices are low. According to SoSoValue data, from Tuesday to Thursday, these funds saw a total net inflow of $1.02 billion, with a single-day inflow of $506.51 million on Wednesday, marking the highest in three days.

ETF analyst Nate Geraci posted on X that despite recent declines in Bitcoin prices, investors continue to buy on dips. He mentioned that since Bitcoin hit its all-time high in early October, spot Bitcoin ETFs have experienced net outflows of about $6.5 billion, but compared to the $55 billion accumulated since January 2024, this pullback is relatively small. Geraci stated that for long-term holders, a 50% correction is not fatal, and confidence among new ETF investors remains solid.

This week’s inflows ended a five-week streak of net outflows. In the last two weeks of January, ETFs saw total outflows of $2.82 billion. The inflows were mainly driven by BlackRock’s iShares Bitcoin Trust (IBIT), which recorded a single-day net inflow of $275.82 million on Thursday. Fidelity’s FBTC and Ark 21Shares ARKB experienced outflows, but these were offset by positive returns from funds like Bitwise BITB and Grayscale BTC.

In the altcoin ETF sector, spot Ethereum (ETH) attracted approximately $173 million during the same period, Solana funds saw about $35 million in inflows, and XRP ETFs experienced a modest inflow of around $7 million. Analysts believe that ETF capital inflows are an important market sentiment indicator, possibly signaling easing selling pressure. Industry analyst Jeff Ko pointed out that the rebound in spot ETF funds reflects reduced aggressive selling, but the probability of a short-term V-shaped recovery remains limited. Bitrue research director Andri Fauzan Adziima also noted that technical indicators show oversold conditions, and sustained capital inflows could serve as a catalyst for market stabilization.

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