Street Calls of the Week
U.Today - Markets rarely move in straight lines, and Feb. 4 was a case in point. Spot Bitcoin ETFs collectively pulled in $341 million, and BlackRock’s iShares Bitcoin Trust (IBIT) dominated with $249 million. Spot Ethereum ETFs? They totaled $308 million in net inflows, marking four consecutive days of positive momentum, according to SoSoValue.
Just a day earlier, things looked different. Bitcoin ETFs recorded $235 million in net outflows on Feb. 3, snapping a four-day inflow streak. Fidelity’s FBTC took the hardest hit, with $177 million exiting. Ethereum ETFs, meanwhile, kept the streak alive, bringing in $83.5 million despite broader market turbulence.
Rewind a bit to Jan. 31, and it was
another day of strong ETF demand. Bitcoin ETFs saw $319 million in inflows, continuing the prior four-day trend. BlackRock’s IBIT once again led the charge with $364 million, while Ethereum ETFs added a more modest $27.8 million.
Of course, none of this happened in isolation. Between Feb. 1 and Feb. 3, a liquidation storm swept through the crypto market. Somewhere between $8 billion and $10 billion in leveraged positions were wiped out.
Bitcoin (BTC) briefly spiked to $91,000, leaving Ethereum and various altcoins nursing 20% losses. Traders scrambled, positions were forcefully closed and portfolios took a hit - a textbook case of cascading liquidations forcing a market reset.
But then...
ETF investors stepped back in. They bought the dip, bringing inflows back on Feb. 4. Does that mean prices will recover? Not necessarily. But it does signal that sentiment and capital remain ready to act when opportunities arise.Meanwhile, BlackRock is making moves beyond just inflows. The firm filed an amendment with the SEC to allow in-kind redemptions for its Bitcoin ETF. If approved, institutional investors could swap ETF shares directly for Bitcoin instead of cash. A small structural shift? Maybe. But it is one that could cut costs and streamline operations, which, over time, tends to matter.
The takeaway? Crypto remains volatile, but institutions are not backing down.