U.S. spot Bitcoin ETFs saw a strong wave of new money this week, but the price of Bitcoin still slipped as traders took profits.
Big buying from BlackRock
Asset management giant BlackRock bought a large amount of Bitcoin during the surge in ETF demand.
Blockchain data shows that thousands of BTC were transferred from Coinbase Prime wallets into addresses linked to the iShares Bitcoin Trust (IBIT).
Most of the transfers happened around 5:45 PM UTC on Feb. 26, with several batches of about 300 BTC each, along with another transfer of roughly 108 BTC.
ETF inflows hit $507 million
According to market data, U.S. spot Bitcoin ETFs recorded about $507 million in net inflows on Feb. 25 — the strongest daily inflow in roughly two weeks.
BlackRock’s IBIT led the pack with about $297 million in new funds. Other issuers, including Fidelity Investments, Grayscale Investments, and Bitwise Asset Management, also reported inflows.
Overall, total inflows across U.S. Bitcoin ETFs have now reached tens of billions of dollars since the products launched.
So why did Bitcoin fall?
Even with the new ETF demand, Bitcoin dipped slightly during the trading session.
According to Eric Balchunas, the renewed inflows came after several weeks of withdrawals. While the rebound is encouraging, it’s still unclear if it signals a longer-term trend.
On-chain data suggests profit-taking by traders kept Bitcoin from breaking above key resistance levels. Each time the price pushed higher in February, sellers stepped in and capped the rally.
The bigger picture
The situation highlights an interesting dynamic in the crypto market right now:
- Institutional demand through ETFs is rising again
- But short-term traders are locking in gains, slowing price momentum
For Bitcoin to push higher, analysts say buying pressure will likely need to outpace the steady flow of profit-taking around resistance levels.
