Bitcoin ETFs Surge Amid Market Turmoil as Traders Seek Value
By John Nada·Feb 3, 2026·2 min read
Bitcoin ETFs see a significant cash influx as investors hunt for value amid recent price drops, highlighting a resilient demand for the cryptocurrency.
Investors are diving back into U.S.-listed Bitcoin ETFs, signaling strong demand even as Bitcoin prices falter. According to CoinDesk, a significant $561.8 million flowed into 11 ETFs on Monday, marking the largest single-day inflow since mid-January. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC led this surge, attracting $142 million and $153.3 million, respectively. This influx comes despite fears surrounding Bitcoin’s recent drop to nine-month lows, which had triggered concerns of broader market instability. Yet, markets showed resilience, countering the panic that followed Bitcoin's plunge from around $98,000 to below $75,000.
The renewed interest ends a nearly ten-day streak of outflows, during which investors withdrew millions amid declining prices. Interestingly, while spot Bitcoin remains about 40% off its October all-time highs, the ETFs themselves are only slightly below their peak holdings. Currently, they manage around 1.3 million BTC, just 5% shy of their October zenith of 1.37 million BTC, as noted by checkonchain data. That divergence adds an intriguing layer to the current investment landscape.
Despite the average cost basis for U.S. Bitcoin ETFs hovering around $84,099, spot Bitcoin trades near $78,000. This situation isn't new; Bitcoin has traded below ETF cost bases before, particularly in late 2024. Such dynamics create a crucial test of investor conviction in Bitcoin ETFs. Should ETF buyers begin to capitulate, the subsequent redemptions could exert additional bearish pressure on the market, potentially intensifying volatility.
The current cash rush into Bitcoin ETFs demonstrates that, even amid market fears and price declines, traders are actively hunting for value. This behavior highlights a resilient belief in Bitcoin as a long-term asset. As we navigate these turbulent waters, the actions of ETF investors could be pivotal in shaping market trends moving forward.