Bitcoin ETFs Party: Cash Flood as Traders Chase Bargains

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Markets

What to know:

  • US spot bitcoin ETFs pulled in $561.8 million, the largest inflow since January 14.
  • While spot bitcoin sits roughly 40% below its October all-time high, US ETFs hold about 1.3 million BTC, just 5% shy of their peak.
  • The average US ETF cost basis is around $84,099, above the current spot price near $78,000.

I’m not saying I stalk the markets, but I did glance at the headlines and found a soap opera about spreadsheets. Investors poured cash into the U.S.-listed bitcoin ETFs on Monday, which basically proves Wall Street still has a soft spot for the cryptocurrency, even if the price drama feels like a revolving door in a nightclub named Volatility.

The 11 ETFs recorded a total net inflow of $561.8 million, the biggest single-day buy since Jan. 14, according to data from Farside Investors.

BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC led the charge, pulling in inflows of $142 million and $153.3 million, respectively, suggesting demand is stubbornly persistent even as price momentum tries to do a disappearing act. Bitcoin had slumped to nine-month lows over the weekend, sparking whispers of disorderly price action across global markets on Monday. Spoiler: the drama calmed down a bit, like someone canceling a shopping spree at the last minute.

The renewed inflows end nearly ten days of outflows during which millions were yanked as Bitcoin fell from around $98,000 to under $75,000.

A notable divergence still remains. Spot bitcoin is about 40% below its October all-time high, yet spot ETFs hold about 1.3 million BTC in assets under management, only about 5% below their October peak of 1.37 million BTC, according to checkonchain data.

Still underwater

While the average cost basis across U.S. bitcoin ETFs sits around $84,099, spot bitcoin trades near $78,000. Bitcoin has traded below ETF cost bases before, particularly in the latter half of 2024, making this a fashionable test of ETF buyer conviction. If the buyers capitulate, redemptions could add to bearish vibes in the market, and the blazer-wearing crowd will likely pretend that’s all part of the plan.

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2026-02-03 13:36