Weekly Bitcoin ETF inflows reach $3.06 billion, registering the second-highest amount ever recorded.
Bitcoin's grip on institutional investors is tightening, with spot BTC exchange-traded funds (ETFs) attracting a record-breaking $3.06 billion in net inflows last week. This monumental surge, spanning from April 21 to April 25, trails only the record-breaking $3.38 billion inflow in November 2024.
Institutional Commitment Galore
Data from SoSoValue paints a spellbinding picture of accelerating institutional commitment. The latest weekly inflow of $3.06 billion ranks second among all-time ETF performances, following the record set in November 2024. Notable mentions go to the $2.73 billion raised between November 29 and December 6, 2024, and the $2.57 billion recorded between March 8 and March 15, 2024.
Weekly inflows surpassed the $2 billion mark on several other occasions, including $2.27 billion in the second week of February 2024, $2.24 billion in the first week of March 2024, and $2.22 billion in the first week of November 2024. The daily breakdown shows April 22 and 23 contributed significantly to the record-breaking surge, with $936.43 million and $916.91 million in net inflows respectively. However, inflows dropped off moderately toward the end of the week, with Thursday 24 seeing $442 million in inflows and Friday 25 hitting just under $380 million.
BlackRock's iShares Bitcoin Trust (IBIT) leads the pack with regards to cumulative net inflow, boasting a staggering $41.2 billion. Fidelity Wise Origin Bitcoin Fund (FBTC) follows in second place with about $11.86 billion, while Grayscale's GBTC is at a deficit of $22.69 billion.
Stablecoins, Corporations, and Sovereign Entities Driving Bitcoin Prices
The period in which Bitcoin ETFs exploded also saw Bitcoin's price surpass $94,000, a rally that experts attribute to wealth managers, corporate treasuries, and sovereign entities rather than retail speculation. Bitwise CEO Hunter Horsley emphasized this point on Twitter, stating that search interest for Bitcoin on Google remains near historic lows even as prices soar, indicating a lack of retail interest.
Previously, Bloomberg ETF expert Eric Balchunas held a similar view, suggesting that corporations and exchange-traded funds are now the primary buyers of Bitcoin, a shift that brings greater stability to the asset's price.
After trading sluggishly for much of early April, Bitcoin broke decisively higher starting April 19. It surged past key resistance levels, accelerating through $90,000 to hit a weekly high of $95,768 before settling near $94,700.
Looking at Bitcoin's fundamentals, technical analysts are optimistic about a bullish run past the $100,000 level, with some anticipating an even bigger surge to $155,000 amid network growth and strong accumulation.
Institutional demand for Bitcoin, driven by Fed policy shifts and dollar trends, coupled with halving-induced supply constraints, could catalyze a breakout beyond the $100,000 threshold. Recent ETF inflows reflect growing institutional conviction in Bitcoin's role as an alternative reserve asset. New ETF offerings like Calamos' principal-protected Bitcoin ETFs provide downside buffers against volatility, thereby attracting risk-averse institutional capital. Approved spot Bitcoin ETFs offer regulated exposure, simplifying compliance for institutions, and prompting mainstream acceptance.
- The surge in Bitcoin's institutional investment, as evidenced by record-breaking $3.06 billion in net inflows for spot BTC exchange-traded funds (ETFs) last week, suggests a decisively growing foothold for cryptocurrency in the finance sector.
- The escalating institutional commitment is further highlighted by the $41.2 billion cumulative net inflow into BlackRock's iShares Bitcoin Trust (IBIT), indicating a significant shift in the capital market towards cryptocurrency trading.
- The unfolding scene in the finance industry, marked by escalating ETF inflows, is being driven by industry giants, wealth managers, corporate treasuries, and even sovereign entities embarking on crypto investing.
- Technological advancements in trading and finance, coupled with the upcoming ETF offerings like Calamos' principal-protected Bitcoin ETFs, are considerably lowering barriers for institutional investors, contributing to the billions pouring into Bitcoin.
- Amidst this advancement, the rising demand for Bitcoin has led to prices soaring past $94,000, with anticipations of a bullish run past the $100,000 level and potentially even $155,000, primarily due to network growth and strong accumulation.
- As the technology behind Bitcoin, blockchain, becomes more integral to finance, Bitcoin can potentially secure a decisive place as an alternative reserve asset in the world of investing.
