After a series of days of continuous outflows, Bitcoin spot ETFs recorded a reversal with a net inflow of $94.34 million on February 28, 2025. This could be a signal that market sentiment is changing significantly.

Reversal After Massive Outflows
Previously, the Bitcoin ETF market had been going through a volatile period, with total outflows reaching a significant level. Notably, on February 26, the market recorded a huge outflow of $754.53 million. However, data from SoSoValue shows that the current cumulative net inflow has reached $36.94 billion, while the total net assets across all Bitcoin spot ETFs reached $95.38 billion.

Fidelity's FBTC Leads Inflows
Among the funds with large movements, Fidelity's FBTC fund recorded the highest inflows of $176.03 million, followed by Ark Invest's ARKB fund with $193.70 million. In contrast, BlackRock's IBIT - one of the most prominent Bitcoin ETFs - saw a net outflow of $244.56 million, while Grayscale's GBTC fund also saw $33.28 million in outflows.

The move comes as Bitcoin's price fluctuates between $78,000 and $85,000, reflecting that market sentiment is still not fully stable. Analysts say more inflows are needed to confirm a sustainable bullish trend for spot Bitcoin ETFs.

BlackRock Still Bullish on Bitcoin

Despite the market volatility, BlackRock remains bullish on Bitcoin's long-term potential. In a comment on February 27, Michael Gates - BlackRock's chief portfolio manager - emphasized that Bitcoin can serve as a portfolio diversifier.

However, market sentiment remains volatile. On February 26, the Crypto Fear and Greed Index fell to "extreme fear" with a score of 10, the lowest level since the collapse of the Three Arrows Capital (3AC) hedge fund in 2022.

BlackRock Adds Bitcoin ETF to Model Portfolio
A notable move from BlackRock is the addition of the Bitcoin ETF (IBIT) to its model portfolio. According to Bloomberg, IBIT can now be allocated between 1% and 2% in alternative asset portfolios.

Bitcoin’s inclusion in the model portfolio could spur strong demand from institutional investors, especially as BlackRock predicts the model portfolio sector will reach $10 trillion in value over the next five years.

Positive Signal But Many Challenges Remain
The reversal of flows into spot Bitcoin ETFs is a positive sign for the market, but the long-term trend remains unclear. Institutional investors are increasingly interested in Bitcoin as a strategic asset, but market volatility remains an important factor to watch.