US spot Bitcoin funds continued their rebound on Wednesday as Bitcoin climbed back above $68,000, attracting $506.5 million in inflows — the largest single-day total since Feb. 2.
Spot Bitcoin exchange-traded funds (ETFs) are now on track for their first weekly inflows in five weeks, after enduring $3.8 billion in cumulative net outflows over that period. Weekly inflows have reached $560.4 million, according to data from SoSoValue.
The latest figures mark two straight days of positive flows, signaling a potential shift in sentiment after February’s steep sell-off erased roughly $20 billion in net assets.
BlackRock’s IBIT leads inflows as ETF trading picks up
BlackRock’s iShares Bitcoin Trust (IBIT) recorded the largest inflows on the day, drawing in $297.4 million, according to data from Farside Investors.
The Bitwise Bitcoin ETF (BITB) and Fidelity Wise Origin Bitcoin Fund (FBTC) followed, posting inflows of $39.4 million and $30.1 million, respectively.
Reflecting the renewed interest, total ETF trading volumes climbed back above $4.3 billion — the highest level recorded since Feb. 9.
Jane Street controversy fuels “paper Bitcoin” debate
The rebound in buying activity comes amid ongoing discussions about how ETF market structure influences Bitcoin price discovery, particularly the role of large market makers such as Jane Street and authorized participants (APs) responsible for creating and redeeming ETF shares.
Rumors circulating on X intensified after a recent lawsuit filed by Todd Snyder, administrator for Terraform Labs. Some online commentators have accused Jane Street of exerting influence over Bitcoin prices through derivatives exposure and alleged market manipulation.
Responding to the speculation, Jeff Park, an adviser at Bitwise Asset Management, wrote on X: “The answer is trickier than the question,” adding that the issue may be “more structurally unsettling than the conspiracy theory itself — and once you understand the actual mechanics, you won’t be able to unsee them.”
“The short answer is that no AP explicitly suppresses Bitcoin’s price,” said Jeff Park, referring to authorized participants involved in ETF share creation and redemption. He argued that the more significant issue lies in how the structure may influence the integrity of the price discovery process itself.
“Those are not the same thing — but the second is arguably more consequential than the first,” he added.
Several analysts have pointed out that selling pressure on Bitcoin has persisted since October 2025, raising questions about whether individual firms can meaningfully shape broader market direction.
Concerns around so-called “paper Bitcoin” — where financial exposure is traded without direct ownership of the underlying asset — have circulated since early February. The Kendall Report previously flagged ETFs as a potential contributor to that dynamic.
The debate gained further traction following an operational error at South Korea’s Bithumb exchange, which mistakenly distributed 620,000 BTC it did not hold, intensifying scrutiny over transparency and market integrity.
