US spot Bitcoin exchange-traded funds recorded their strongest single-day inflows in over a month on Wednesday, as Bitcoin surged past the $68,000 mark. The renewed momentum signals a possible turnaround after weeks of persistent outflows that rattled investor confidence.

According to market data, US-listed spot Bitcoin ETFs attracted $506.5 million in fresh capital, the largest daily inflow since Feb. 2. The move comes as Bitcoin traded around $68,212, strengthening hopes that institutional demand may be returning after a difficult February.

ETFs on Track for First Weekly Gain in Over a Month

The latest inflows have pushed total weekly inflows to $560.4 million, putting Bitcoin ETFs on course for their first net positive week after five consecutive weeks of outflows. During that stretch, investors withdrew approximately $3.8 billion.

February proved particularly harsh for crypto-linked funds. A broad sell-off erased nearly $20 billion in net ETF assets, raising concerns about waning institutional appetite. However, two straight days of inflows suggest that sentiment may be stabilizing as Bitcoin reclaims key price levels.

The rebound in price appears to have restored short-term confidence among investors who had stepped to the sidelines during the correction.

BlackRock’s IBIT Leads the Recovery

Among the funds, BlackRock’s iShares Bitcoin Trust ETF stood out, drawing $297.4 million in inflows in a single session. The fund continues to dominate the US spot Bitcoin ETF market in both assets and daily activity.

The Bitwise Bitcoin ETF followed with $39.4 million in new capital, while the Fidelity Investments Wise Origin Bitcoin Fund recorded $30.1 million in inflows.

Trading activity also picked up sharply. Combined ETF trading volumes rose above $4.3 billion, marking the highest level since early February. The surge in activity indicates that both institutional and retail participants are re-engaging with the market as price momentum improves.

Market Structure Debate Resurfaces

While inflows have returned, discussions around Bitcoin market structure continue to gain traction. Attention has centered on the role of large market-making firms and authorized participants, or APs, who facilitate the creation and redemption of ETF shares.

Recent online speculation has focused on Jane Street, a major liquidity provider in ETF markets. Rumors circulating on X followed a lawsuit filed by Terraform Labs administrator Todd Snyder, raising questions about whether derivatives exposure and ETF mechanics could influence Bitcoin’s price discovery.

Jeff Park, an adviser at Bitwise, weighed in publicly, noting that while authorized participants do not directly suppress Bitcoin’s price, the ETF structure itself can affect how prices are discovered in the broader market. According to Park, the issue is less about intentional manipulation and more about structural mechanics that may influence liquidity flows.

Some analysts have observed that selling pressure in Bitcoin has lingered since October 2025, suggesting that broader macro factors, rather than individual firms, may have played a larger role in recent volatility.

Concerns Over “Paper Bitcoin” Persist

The renewed ETF inflows also arrive amid ongoing concerns about so-called paper Bitcoin, a term used to describe financial exposure to Bitcoin without holding the underlying asset directly.

The debate intensified earlier this month when The Kendall Report highlighted the possibility that ETFs could contribute to synthetic exposure that impacts price discovery. Although ETFs are backed by custodial holdings, critics argue that complex derivatives and secondary market trading may blur transparency.

Further scrutiny followed an operational error at South Korea’s Bithumb exchange, where 620,000 BTC were mistakenly distributed despite not being held by the platform. The incident renewed broader questions about custody, verification, and systemic safeguards within the crypto ecosystem.

For now, however, investor attention remains focused on Bitcoin’s price trajectory. With BTC holding above $68,000 and ETF inflows accelerating, market participants are watching closely to see whether this rebound marks the beginning of a sustained recovery or merely a short-term bounce after February’s sharp correction.