U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a substantial influx of capital, with net inflows totaling $936 million on Tuesday, marking the largest single-day increase since Jan. 17. This surge reflects a growing interest among institutional investors in Bitcoin as a potential hedge against economic and geopolitical uncertainties.
The recent inflows were distributed across 10 Bitcoin ETFs, with notable contributions from Ark & 21Shares, which saw $267.1 million, followed by Fidelity’s FBTC with $253.8 million, and BlackRock’s IBIT, which attracted $193.5 million. Over the past three days, U.S. Bitcoin funds have witnessed net inflows exceeding $1.4 billion.
Analysts indicate that the interest in Bitcoin is driven by macroeconomic factors, including persistent inflation and a weakening U.S. dollar. Rachael Lucas, a crypto analyst at BTC Markets, noted that these ETF inflows signify a structural shift in which institutional capital is increasingly returning to crypto. She highlighted favorable supply dynamics and Bitcoin’s growing acceptance as a strategic asset class.
Min Jung, a research analyst at Presto, commented on Bitcoin’s evolving role as a potential safeguard against inflation and geopolitical risks. Although it may be premature to label Bitcoin a definitive “safe haven,” its relatively stable performance during recent global market fluctuations suggests it is being viewed as “digital gold.”
The influx of funds into Bitcoin ETFs coincided with a recent uptick in Bitcoin’s price, which rose by 6.4% to approximately $93,765. Factors likely to influence further inflows include expectations of renewed quantitative easing by the Federal Reserve and the potential for improved U.S.-China trade relations, as indicated by Treasury Secretary Scott Bessent.
As Bitcoin ETFs now hold over $103 billion in assets, market participants are closely monitoring the evolving landscape for further investment opportunities.
