Bitcoin ETFs See $88M Inflow; Ethereum Flows Stall to Near Zero

The institutional capital rotation is now clear. On February 20, Bitcoin spot ETFs recorded a robust $88.04 million in net inflows, led by BlackRock's IBIT with $64.46 million. This stands in stark contrast to Ethereum's recent performance. Just two days prior, on February 18, U.S. spot Ethereum ETFs saw $42.5 million in net outflows, ending a brief inflow streak and highlighting the asset's volatility.

That volatility is evident in the week's flow pattern. Ethereum ETFs had shown a brief resurgence, posting $13.82 million in inflows on February 10 after a $177.02 million outflow streak earlier in the month. Yet, the positive momentum was fleeting, quickly reversing into the outflows seen at the start of the week. This choppiness underscores the unpredictable nature of institutional sentiment for Ethereum products.

The bottom line is a decisive shift in liquidity. While Bitcoin ETFs continue to draw substantial new capital, Ethereum ETF flows have stalled and turned negative. This divergence signals that institutional investors are currently rotating their capital from Ethereum into Bitcoin, favoring the latter's established flow patterns and perceived stability.

Institutional Conviction: Scale and Stability in Bitcoin

The recent $88 million inflow into Bitcoin ETFs marks a notable reversal from a five-week outflow streak that totaled roughly $3.8 billion. This scale of daily capital movement is significant, especially after a period of sustained selling pressure. The flow pattern shows the market is still sensitive to macro events, with outflows driven by institutional de-risking amid geopolitical and economic uncertainty.

That conviction is highly concentrated. On the inflow day, BlackRock's IBIT alone accounted for $64.46 million, or roughly 73% of the total daily flow. This extreme concentration signals that a single, dominant player is driving the movement, which can provide stability but also introduces a single point of influence. The asset base reflects this integration: Bitcoin ETFs now hold $85.31 billion in net assets, representing about 6.3% of Bitcoin's total market cap.

The bottom line is durable institutional adoption. While monthly momentum has cooled from its mid-2025 highs, the sheer scale of assets and the consistent flow through a few major products indicate deep, established integration. This concentration and scale provide a foundation for stability that Ethereum ETFs, with their thin and volatile daily flows, currently lack.

Catalysts and Risks: What to Watch for the Thesis

The key flow pattern to watch is whether the recent $88 million Bitcoin ETF inflow is a one-day bounce or the start of a sustained accumulation phase after a five-week outflow streak. The risk of a reversal is real, as shown by the $133.3 million Bitcoin ETF outflow on February 18. That single day of selling, which occurred even as the weekly total remained negative, highlights the market's sensitivity to macro uncertainty and institutional de-risking. For the inflow trend to be durable, daily flows need to consistently outweigh the larger redemption days seen earlier in the week.

For Ethereum, the signal is even murkier. The asset has seen a brief return to positive flows, with the week ending February 18 recording a net inflow of $6.80 million after four straight weeks of outflows. Yet, this positive week was immediately followed by a third consecutive day of net outflows on February 20. This volatile daily swing offers no clear signal of institutional conviction. The bottom line is that Ethereum ETF flows remain too thin and erratic to support a sustained price recovery; they need to show consistent weekly inflows to confirm a floor.

The primary risk to the entire thesis is a broad retreat from crypto ETFs. If Bitcoin ETF outflows resume at the scale seen in mid-February, it would confirm a deeper institutional pullback, pressuring prices across the board. The current divergence-Bitcoin drawing inflows while Ethereum's flows stall-depends on this fragile split. Any shift in macro sentiment that triggers a synchronized sell-off would erase the flow advantage Bitcoin currently holds.