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Ruholamin Haqshanas
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Ruholamin Haqshanas
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After eight consecutive days of net outflows, Spot Bitcoin ETFs finally recorded a net inflow of $94.34 million on February 28, 2025, marking a potential shift in market sentiment.
The reversal follows a turbulent period that saw significant capital exits from Bitcoin ETFs, including a staggering $754.53 million outflow on February 26.
The latest data from SoSoValue shows that cumulative total net inflows now stand at $36.94 billion, with total net assets across all spot Bitcoin ETFs reaching $95.38 billion. The total value traded on February 28 amounted to $3.91 billion.
Fidelity’s FBTC Records Highest Inflows
Among the biggest movers, Fidelity’s FBTC recorded the highest inflow, adding $176.03 million, followed by Ark Invest’s ARKB, which saw an inflow of $193.70 million.
On the other hand, BlackRock’s IBIT, one of the most prominent Bitcoin ETFs, suffered a net outflow of $244.56 million, while Grayscale’s GBTC saw another $33.28 million in net exits.
The turnaround comes amid heightened market volatility, with Bitcoin recently fluctuating between $78,000 and $85,000.
Despite the recent inflow, the broader trend remains uncertain, as previous outflows have been driven by profit-taking and shifting investor sentiment.
Analysts suggest that further sustained inflows would be necessary to confirm a bullish trend reversal for spot Bitcoin ETFs.
Meanwhile, BlackRock remains optimistic about Bitcoin’s long-term investment potential.
In a Feb. 27 commentary, Michael Gates, the lead portfolio manager for the firm’s Target Allocation ETF model suite, emphasized that Bitcoin could serve as a unique diversification tool for portfolios.
“As multi-asset portfolio constructors, we believe bitcoin has long-term investment merit for certain investors and can potentially provide unique and additive sources of diversification to portfolios.”
However, market sentiment has been rattled.
On Feb. 26, the Crypto Fear & Greed Index dropped to “extreme fear” with a score of 10—its lowest level since June 2022, when the collapse of Three Arrows Capital (3AC) shook the industry.
BlackRock Adds Bitcoin ETF to Its Model Portfolio Amid Growing Institutional Adoption
BlackRock has incorporated its Bitcoin ETF into its model portfolio product.
According to a Bloomberg report on Feb. 28, the firm’s iShares Bitcoin ETF Trust (IBIT) will now be available for portfolios allowing alternative assets, with allocations ranging from 1% to 2%.
The move could generate additional demand for the ETF as institutional adoption of Bitcoin continues to expand.
The 1%–2% allocation is a cautious approach due to Bitcoin’s notorious volatility, which BlackRock’s Investment Institute described as a “reasonable range” in a recent research paper.
The firm noted that exceeding this level could significantly impact the overall portfolio’s risk profile.
BlackRock’s model portfolio business, valued at $150 billion, provides a variety of investment strategies for financial advisers managing client assets.
These portfolios offer different asset allocations tailored to objectives such as growth, income generation, or capital preservation.
In 2023, BlackRock projected that the model portfolio sector would expand to a $10 trillion industry over the next five years, up from roughly $4.2 trillion at the time.
Given the sector’s influence, adjustments in model portfolio allocations can drive substantial capital inflows into specific assets, including Bitcoin ETFs.
Financial institutions have increasingly analyzed Bitcoin’s role in traditional portfolio structures, particularly the 60/40 allocation model.
