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U.S. spot crypto ETFs recorded about $562 million in net inflows into Bitcoin funds on February 2. It ended four straight days of selling and marked the strongest inflow since mid-January. The move came as Bitcoin traded below $76,000 which prompted large institutions to add exposure through regulated products instead of just direct market purchases.
Fidelity’s FBTC led with about $153 million, followed by BlackRock’s IBIT and Bitwise’s BITB. These inflows showed renewed demand at lower price levels. At the same time total assets held by crypto ETFs are still far below late 2025 levels, when holdings exceeded $140 billion and now sit near $100 billion.
This gap points to an ongoing market resset. Buying activity appeared selective instead of broad, funds added exposure when prices weakened, not committing capital at higher levels. This pattern has shaped much of 2026.
Many funds reduced exposure during uncertainty, then returned when valuations compressed. As a result crypto ETFs increasingly become short-term timing strategies. Bitcoin rebounded toward $78,000 after the inflows. Still, the move reflected tactical positioning rather than confirmation of a sustained uptrend, based on current ETF allocation trends.
While Bitcoin funds attracted capital, Ethereum crypto ETFs moved in the opposite direction during the same period. On February 2, Ethereum ETFs posted net outflows of about $2.9 million. Some trackers reported larger withdrawals earlier in the week. BlackRock’s ETHA accounted for a significant share of the selling, continuing a trend seen across early 2026.
Ethereum ETFs have struggled to maintain steady inflows even when Bitcoin stabilized. Funds have continued trimming ETH exposure during periods of market stress. Several factors explain this divergence. Ethereum’s investment narrative has grown more complex due to layer-2 debates, rising competition and shifting fee dynamics. These issues complicate messaging for traditional investors.
In addition many institutions already hold ETH from prior cycles. During downturns, they often reduce these positions first. Bitcoin, by contrast, fits more easily into simplified portfolio models. This dynamic has pushed capital toward Bitcoin during risk-off periods. Meanwhile, Ethereum ETF flows have reflected investor comfort levels rather than underlying network activity.
Crypto markets are nearing key inflection points after weeks of declines, according to a recent report from Wall Street bank Citi. The bank noted that ETF inflows, once a major demand source, have slowed sharply. At the same time, futures markets continue to show pockets of long liquidations. Analyst Alex Saunders said crypto volatility now resembles precious metals but lacks comparable upside momentum.
Bitcoin often carries the ‘digital gold’ label. Yet, it has not matched gold’s recent rally during geopolitical tension and macro uncertainty. Instead, BTC has tracked liquidity conditions and risk sentiment. Citi pointed to regulation as a potential catalyst. Progress on a U.S. digital asset market structure bill has remained slow, with uneven political support reducing market confidence.
Macro pressures also weigh on sentiment. Concerns around a shrinking Federal Reserve balance sheet raise fears of reduced bank liquidity, which historically pressures crypto markets. Citi said a prolonged crypto winter remains a tail risk rather than its base case.
With average ETF holders now underwater and Bitcoin nearing pre-election levels near $70,000, markets approach zones that may define near-term direction—will selective ETF buying turn into sustained demand?
Read More: Bitcoin Nears Bear Market End as ETF Outflows Mount: Will Bitcoin Hit $60
Bitcoin ETF inflows rebounded sharply after a price dip, led by major issuers, while Ethereum ETFs continued to record outflows. Total crypto ETF assets remain well below late 2025 levels. Citi noted slowing ETF demand, ongoing liquidations, and macro and regulatory factors that may shape near-term market direction.
