Spot Bitcoin exchange-traded funds in the United States have returned to net inflows after President Donald Trump agreed to pause the imposition of tariffs on Canada and Mexico for a month following negotiations with their leaders.
According to data from Farside Investors, the 12 spot Bitcoin ETFs recorded a net inflow of $340.7 million on Feb. 4, marking a shift from the outflows recorded the previous day when these investment products saw $234.4 million in net redemptions.
BlackRockโs IBIT once again took the lead in inflows with $249 million entering the fund following a day of remaining still. The spot Bitcoin has seen about $40.7 billion in inflows since the launch day. ARK and 21 Sharesโ ARKB followed with $56.1 million in inflows.
Other ETFs that experienced net positive flows included Grayscaleโs GBTC, which drew in $19.5 million, and Bitwiseโs BITB, which saw a $16.1 million inflow. The remaining seven ETFs reported no inflows or outflows, indicating a pause in investor activity for those funds.
The resurgence of inflows into the 12 Bitcoin ETFs followed President Donald Trumpโs agreement with the presidents of Mexico and Canada to suspend the controversial 25% tariffs on both nations for one month. This was accompanied by Trump signing an executive order to establish a first-of-its-kind sovereign wealth fund, sparking speculation within the crypto community that the U.S. may use it to purchase Bitcoin.
Following the news, Bitcoin briefly reclaimed the $100,000 key level on Feb. 4, while Ethereum, Solana, XRP, and Dogecoin also posted significant gains, signaling a potential bullish resurgence.
The recovery comes after a market-wide decline that led to over $2 billion in liquidations in the crypto derivatives market on Monday, following Trumpโs tariff announcement on Canada, Mexico, and China.
The reaction from market participants fueled fears of a global trade war, causing the crypto market to briefly shed over $500 billion on Feb. 3.
At press time, Bitcoin (BTC) was exchanging hands at $98,070, down 1.3% over the past day.
Commenting on the recent scenario, Matt Mena, crypto research strategist at 21Shares told crypto.news, that while the tariffs have caused short-term volatility, they โmay contribute to a longer-term shift that ultimately benefits Bitcoin.โ If the U.S. seeks to โweaken the dollarโs overvaluation while maintaining cheap borrowing costs,โ it could lead to increased pressure on the Fed to cut rates, creating a โmore accommodative monetary environment.โ
He emphasized that a weaker dollar, lower Treasury yields, and rising global liquidity could act as catalysts for Bitcoinโs next major rally, reinforcing its position as a hedge against fiat debasement.
Mena also pointed out that while the market correction has been sharp, it acts as a โhealthy shakeout,โ as crypto cycles rarely sustain parabolic runs without pullbacks. Historically, February has been a strong month for Bitcoin, posting positive returns in 12 of the last 14 years, with an average return of 15.66%, per data from CoinGlass.
Although these developments may seem negative for Bitcoin in the short term, Mena suggests that โthis period of volatility may ultimately set the stage for its next major expansion,โ with macroeconomic conditions aligning for Bitcoin to potentially break past previous all-time highs and consolidate within the โ$150k-$200k range.โ
