US spot Bitcoin funds continued their rebound on Wednesday as BTC moved back above $68,000, attracting $506.5 million in inflows, the strongest daily intake since Feb. 2.

Bitcoin exchange-traded funds are approaching what could become their first positive week after five consecutive weeks of net outflows totaling $3.8 billion, with weekly inflows now reaching $560.4 million, according to SoSoValue. The improvement represents two straight days of positive flows and may signal stabilizing conditions following February’s sharp sell-off that erased roughly $20 billion in net assets.

Institutional flows and trading activity rebound

BlackRock’s iShares Bitcoin Trust ETF led the recovery, drawing $297.4 million in new capital, according to Farside data. Bitwise’s Bitcoin ETF and Fidelity’s Wise Origin Bitcoin Fund followed, recording inflows of $39.4 million and $30.1 million, respectively. Reflecting renewed interest, ETF trading volumes climbed above $4.3 billion, marking the highest level since Feb. 9 and indicating improving market participation.

Ongoing debate around market structure and “paper Bitcoin”

The renewed inflows arrive amid continued discussion about how ETF mechanics influence Bitcoin price discovery, particularly the role of major market makers such as Jane Street and authorized participants involved in creating and redeeming ETF shares.

Rumors circulating on X following a recent lawsuit filed by Terraform Labs administrator Todd Snyder alleged that Jane Street may influence prices through derivatives exposure and market manipulation. Addressing the topic, Bitwise adviser Jeff Park wrote, “The answer is trickier than the question,” adding, “But it’s also more structurally unsettling than the conspiracy theory itself — and once you understand the actual mechanics, you won’t be able to unsee them.”

Park further clarified, “The short answer is that no AP explicitly suppresses Bitcoin price,” emphasizing that the concern relates more to the integrity of the price discovery process than to direct price suppression. “Those are not the same thing—but the second is arguably more consequential than the first.”

Some analysts have pointed out that selling pressure has persisted since October 2025, raising questions about the influence of individual market participants. Meanwhile, concerns surrounding “paper Bitcoin,” where exposure is traded without holding underlying assets, have remained since early February after The Kendall Report identified ETFs as a contributing factor. The discussion intensified following an operational error at South Korea’s Bithumb exchange, which mistakenly distributed 620,000 BTC it did not possess, reinforcing ongoing scrutiny over transparency and market structure.

Sources:

https://cointelegraph.com/news/bitcoin-etf-rise-507-million-inflows-btc-reclaims-68k

https://x.com/hodlonaut/status/2026767382610358520

https://x.com/dgt10011/status/2026785209983619485

https://sosovalue.com/assets/etf/us-btc-spot

https://farside.co.uk/btc/