Spot Bitcoin ETFs Ingest $562M in Daily Inflows—Is This a Bullish Rebound or Just a Blip?

Core Insights - U.S. spot Bitcoin exchange-traded funds (ETFs) saw a significant turnaround in investor flows on February 2, attracting nearly $562 million in net daily flows after weeks of substantial net outflows [1][2] - The cumulative net inflows for all U.S. Bitcoin spot ETFs reached $55.57 billion, marking one of the largest single-day inflows since early January [1] Group 1: Market Dynamics - The inflow recovery followed a challenging period for Bitcoin-linked investment products, with spot ETFs experiencing heavy redemptions totaling $817.87 million on January 29 and $509.70 million on January 30 [3] - Major stock indexes have been declining since October, contributing to thin trading in both conventional and crypto markets, with total net assets held by U.S. Bitcoin spot ETFs dropping to $100.38 billion from over $125 billion in mid-January [4] - Despite the inflow surge, the decline in total net assets reflects Bitcoin's price drawdown rather than a decrease in ETF participation [4] Group 2: Trading Activity - Trading activity rebounded alongside inflows, with the total daily traded value across spot Bitcoin ETFs reaching $7.68 billion, indicating active repositioning rather than passive inflows [5] - BlackRock's iShares Bitcoin Trust remained the largest fund, holding $60.17 billion in net assets, while Fidelity's FBTC led the day in inflows with $153.35 million, bringing its cumulative inflows to $11.43 billion [6] - Grayscale's GBTC saw no new inflows and faced cumulative net outflows of $25.70 billion, while other issuers like Bitwise, ARK Invest, and VanEck reported positive flows [7]