In a significant development within the U.S. spot Bitcoin ETF market, ARK 21Shares and Fidelity Bitcoin ETFs have experienced a notable net inflow of $369.7 million, breaking an eight-day streak of outflows. This influx is a welcome change for investors following a period of continuous losses.
Recent Inflows and Market Performance
The inflows were particularly strong on February 28, when the U.S. spot Bitcoin ETFs recorded a net inflow of $94.3 million, marking the first positive movement since February 14. The ARK 21Shares Bitcoin ETF (ARKB) led the way with an impressive gain of $193.7 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely with $176 million.
The combined inflow from ARKB and FBTC has helped mitigate some of the losses in the market, especially in light of the $244.6 million outflow from BlackRock’s iShares Bitcoin Trust ETF (IBIT). Additionally, the Bitwise Bitcoin ETF (BITB) and Grayscale Bitcoin Mini Trust ETF (BTC) reported minor gains of $4.6 million and $5.6 million, respectively.
Challenges for Other Funds
While ARK 21Shares and Fidelity have seen a resurgence in inflows, BlackRock and Grayscale are facing ongoing outflows from their Bitcoin ETFs. The iShares Bitcoin Trust ETF (IBIT) and Grayscale’s Bitcoin Trust ETF (GBTC) have both reported significant capital losses, contributing to a broader trend of outflows that have affected the U.S. Bitcoin ETF market.
Since February 18, the market has seen a staggering $3.26 billion in net outflows, with February 25 marking a particularly challenging day when $1.13 billion exited the market. The difficulties faced by BlackRock and Grayscale highlight the volatility and instability that have characterized the Bitcoin ETF landscape in recent weeks.
Market Volatility and Investor Sentiment
The recent inflows into ARK 21Shares and Fidelity Bitcoin ETFs coincide with a period of significant price volatility for Bitcoin itself. Between February 18 and February 28, the cryptocurrency experienced a dramatic 17.6% price drop, reaching a low of $78,940—its lowest level in nearly four months.
This downturn was particularly pronounced, aligning with the record outflow of $1.13 billion from U.S. spot Bitcoin ETFs on February 25. However, following this low, Bitcoin has shown signs of recovery, climbing back above $86,000 as of March 2, 2025. The price action throughout February has been marked by sharp declines, with Bitcoin initially trading near $102,000 before facing multiple downturns.
Ongoing Market Trends
Since January 10, 2025, the spot Bitcoin ETF market has recorded a net outflow of $300 million, reflecting the ongoing instability that has characterized this sector. While the recent inflows on February 28 provided a temporary boost, the overall trends remain mixed, with significant outflows from major players like BlackRock and Grayscale continuing to exert pressure on the market.
The contrasting performance of ARK 21Shares and Fidelity against the backdrop of these outflows highlights the challenges faced by many Bitcoin ETFs in attracting and retaining investor capital. As the market continues to evolve, the dynamics between inflows and outflows will be closely monitored by investors and analysts alike.
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