BTC ETFs saw a net inflow of around $507 million on February 25 as BlackRock purchased thousands of BTC from Coinbase Prime, but BTC still lost ground on profit-taking.
BlackRock purchased a substantial amount of bitcoin during the largest daily influx of U.S. spot exchange-traded funds into bitcoin in two weeks, according to market data.
Data shows that BlackRock transferred thousands of bitcoins to its iShares Bitcoin Trust wallets on February 26, according to blockchain analytics firms. The transfers came from Coinbase Prime hot wallets and occurred in multiple batches within the same hour, the data shows. Blockchain analytics companies have shared logs showing multiple transfers of around 300 bitcoins to addresses linked to the iShares trust. The timestamp of these transfers was recorded around 17:45 UTC.
BlackRock had purchased additional bitcoins a few days earlier and transferred bitcoins to Coinbase the day before, transaction records show. Market analysts followed the activity as other ETFs reported outflows during the same period.
U.S. spot bitcoin ETFs saw strong net inflows on Feb. 25, marking the highest daily inflow in two weeks, according to SoSoValue data. Total cumulative inflows reached tens of billions of dollars across all issuers, the data showed. BlackRock’s iShares Bitcoin Trust led the cash flow for the day. Fidelity’s Bitcoin ETF, Grayscale’s Trust and Bitwise also reported inflows, the data showed. Other issuers saw smaller inflows, while some smaller ETFs reported no net flows that day.
Bloomberg ETF analyst Eric Balchunas noted that the renewed inflows followed weeks of withdrawals. Balchunas said the surge in interest was timely for the market, but he was uncertain whether the trend would mark a lasting rebound.
According to market data, Bitcoin traded near its recent highs but declined on the day, falling even as ETF inflows increased. Charts show that bitcoin briefly declined during the trading session. On-chain data indicated that recent profit-taking kept Bitcoin below certain resistance levels, with demand slowing near this range and recovery attempts in February meeting resistance at similar levels, according to blockchain analysts.