CryptoQuant CEO Ki Young Ju believes Bitcoin’s bull cycle will persist as long as Bitcoin ETF demand remains net positive. In a February 20 post on X, Ju noted that while ETF inflows have slowed, they continue to outweigh outflows, suggesting the market remains in bullish territory. However, he warned that a prolonged period of net negative demand would likely indicate the beginning of a bear market.
ETF Outflows and Institutional Interest
According to SoSoValue data, Bitcoin ETFs saw $71.07 million in outflows on February 19, marking the second consecutive day of net redemptions. Fidelity’s FBTC recorded the largest withdrawals at $48.39 million, followed by Valkyrie’s BRRR, ARK 21Shares’ ARKB, and VanEck’s HODL. Meanwhile, BlackRock’s IBIT and several other ETFs saw no significant movement. Despite these short-term outflows, overall ETF trading volume remained strong at $2.05 billion.
Despite these fluctuations, institutional interest in Bitcoin ETFs is growing. On February 14, Abu Dhabi’s Sovereign Wealth Fund, Mubadala Investment Company, disclosed a $436.9 million investment in BlackRock’s IBIT shares, making it one of the first major sovereign funds to allocate a portion of its portfolio to crypto.
Additionally, a February 13 SEC filing revealed that Barclays now owns 2.47 million IBIT shares, valued at $131 million as of December 31. The UK-based bank joins major financial institutions such as JP Morgan and Goldman Sachs in increasing their exposure to Bitcoin ETFs.
Market Volatility and Bitcoin’s Price Movements
Bitcoin is currently trading around $97,000, a notable decline from its all-time high of $109,200 last month. A key factor in this drop is waning confidence in the Trump administration’s ability to swiftly implement a Strategic Bitcoin Reserve. Many investors had anticipated quick policy actions post-election, but uncertainty has contributed to renewed market volatility.
Ki Young Ju’s insights reinforce the importance of ETF demand in sustaining Bitcoin’s bull market. While short-term outflows have raised concerns, strong institutional backing and continued investor interest in Bitcoin ETFs suggest that the market remains resilient. Whether Bitcoin can reclaim its previous highs will largely depend on the trajectory of ETF inflows and broader market sentiment.
