US Bitcoin ETFs See $507M Surge in Capital as Bitcoin Pushes Past $68K
American Bitcoin exchange-traded funds approach their first positive weekly performance following a five-week streak of withdrawals amounting to $3.8 billion.
American spot Bitcoin investment products continued their recovery trajectory on Wednesday as Bitcoin surged back above the $68,000 threshold, recording capital inflows of $506.5 million—representing the highest single-day figure registered since Feb. 2.
Exchange-traded funds (ETFs) focused on Bitcoin (BTC) are approaching what could be their initial weekly period of positive flows following five consecutive weeks of net withdrawals amounting to $3.8 billion, with current weekly inflows standing at $560.4 million, based on data compiled by SoSoValue.
The positive performance represents the second straight day of capital inflows, suggesting a potential turnaround after a substantial February selloff that erased $20 billion in total net assets.
BlackRock's IBIT leads inflows with $297 million as ETF trading rebounds
The iShares Bitcoin Trust ETF (IBIT) from BlackRock captured the dominant portion of yesterday's capital inflows, securing $297.4 million in new investments, based on information from Farside data.
Coming in behind were the Bitwise Bitcoin ETF (BITB) and the Fidelity Wise Origin Bitcoin Fund (FBTC), which recorded inflows of $39.4 million and $30.1 million in that order.
Demonstrating the resurgence in investor appetite, trading volumes for ETFs climbed back above the $4.3 billion mark, reaching their peak since Feb. 9.
Jane Street's ETF controversy adds to mounting "paper Bitcoin" concerns
The resurgence in purchasing activity arrives amid ongoing investor discussions regarding how market infrastructure influences Bitcoin's price discovery process, including questions about the function of major market-making entities like Jane Street and authorized participants (APs) that facilitate the creation and redemption of ETF shares.
Following a recent legal action initiated by Todd Snyder, administrator for Terraform Labs, speculation has spread across X that Jane Street may be affecting prices through its derivatives positions in BTC and engaging in market manipulation.
"The answer is trickier than the question. But it's also more structurally unsettling than the conspiracy theory itself — and once you understand the actual mechanics, you won't be able to unsee them."
Jeff Park, Bitwise advisor
Park explained that "The short answer is that no AP explicitly suppresses Bitcoin price," emphasizing that what the AP framework can potentially suppress is the integrity of the price discovery mechanism itself.
"Those are not the same thing—but the second is arguably more consequential than the first," he added.
Several market analysts have pointed out that downward pressure on Bitcoin has remained consistent since October 2025, which casts doubt on the influence of any single market participant.
Worries surrounding "paper Bitcoin," a phenomenon where trading entities operate without holding actual cryptocurrency, have persisted since early February, when The Kendall Report identified ETFs as a contributing factor to this issue.
The controversy gained additional traction following an incident at Bithumb exchange in South Korea, where the platform erroneously distributed 620,000 BTC that it did not actually possess, further highlighting persistent questions surrounding transparency and the overall integrity of cryptocurrency markets.