Bitcoin ETFs Regain Steam on $507M Inflows as BTC Hits $68K

What to Know

$506.5 million flowed into US spot Bitcoin ETFs on Wednesday, the largest single-day haul since February 2
$560.4 million in weekly net inflows could end five straight weeks of outflows totaling $3.8 billion
BlackRock's IBIT led all funds with $297.4 million in fresh capital on the day
ETF trading volumes surged above $4.3 billion, reaching the highest level since February 9

Bitcoin ETFs posted their strongest day of inflows in nearly a month on Wednesday, February 26, as BTC reclaimed the $68,000 level. The $506.5 million haul marked two consecutive sessions of net buying, putting weekly flows on track for their first positive reading after five straight weeks of redemptions, according to SoSoValue data.

BlackRock IBIT Leads the Bitcoin ETF Rebound

BlackRock's iShares Bitcoin Trust ETF (IBIT) captured the lion's share of Wednesday's inflows at $297.4 million, according to Farside data. The Bitwise Bitcoin ETF (BITB) followed with $39.4 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) drew $30.1 million.

Aggregate ETF trading volume climbed above $4.3 billion on Wednesday, its highest mark since February 9, according to SoSoValue. The volume spike signals renewed institutional engagement after a sell-off that erased $20 billion in net assets during February.

Can Weekly Inflows End the $3.8 Billion Outflow Streak?

Weekly net inflows now stand at $560.4 million, positioning US spot Bitcoin ETFs for their first positive week after five consecutive weeks of outflows totaling $3.8 billion, according to SoSoValue data. Two back-to-back sessions of buying represent a meaningful shift in sentiment, though further redemptions could still reverse the trend before Friday's close.

A confirmed positive week would signal that the worst of the February correction may have passed and that institutional allocators are willing to re-enter near $68,000.

Jane Street Controversy Clouds ETF Market Structure

The renewed buying arrives against intensifying debate over how authorized participants influence Bitcoin price discovery. Following a lawsuit filed by Terraform Labs administrator Todd Snyder, Jane Street has faced accusations of manipulating prices through derivatives exposure to BTC, according to rumors circulating on X.

Bitwise adviser Jeff Park weighed in on Wednesday, stressing that no authorized participant explicitly suppresses the Bitcoin price but that the AP structure itself can affect the integrity of price discovery.

"Those are not the same thing -- but the second is arguably more consequential than the first," Park said in a post on X. Some analysts noted that selling pressure on Bitcoin has persisted since October 2025, raising broader questions about structural dynamics.

The short answer is that no AP explicitly suppresses Bitcoin price. It's the integrity of the price discovery mechanism that the AP structure can suppress.
— Jeff Park, Bitwise Adviser

What Does Paper Bitcoin Mean for Market Integrity?

Paper Bitcoin refers to synthetic exposure traded by financial firms without acquiring actual cryptocurrency. Concerns have lingered since early February 2026, when commentators highlighted ETFs as a potential contributor. The debate intensified after South Korea's Bithumb exchange mistakenly distributed 620,000 BTC it did not hold, underscoring ongoing transparency questions.

Despite these structural concerns, the return of meaningful inflows into Bitcoin ETFs suggests that the multi-week capitulation phase may be nearing its end. Unresolved questions about authorized participant mechanics and paper Bitcoin will likely continue to weigh on sentiment, even as BTC holds above $68,000.