On April 21, a total of $381 million was inflowed into Spot Bitcoin exchange-traded funds (ETFs), representing the highest daily inflow in the last two months. Despite declines in traditional financial markets, Bitcoin has begun to re-attract the interest of institutional investors, exceeding the $88,000 level. The weakening of the US dollar and Trump’s criticism of the Fed seem to have directed investors to alternative assets, especially Bitcoin.
Bitcoin Rises Again on ETF Inflows
Interest in spot Bitcoin ETFs in the US has increased again, with a net inflow of $381.4 million on April 21, the highest daily inflow since January 30. Despite the sharp decline in traditional markets, Bitcoin continued to test the $88,000 level, showing a strong performance. This development shows that institutional investors are increasingly interested in the cryptocurrency market. According to SoSoValue data, the highest inflow among 12 different spot Bitcoin ETFs in the US was to the ARKB fund from Ark and 21Shares. ARKB had the largest inflow with a net inflow of $116.1 million, followed by Fidelity’s FBTC fund with $87.6 million. Bitwise’s BITB fund received an inflow of $45.1 million, and BlackRock’s IBIT fund recorded an inflow of $41.6 million.
Bitcoin Price Performance and ETF Demand
The increasing demand in spot Bitcoin ETFs is directly linked to Bitcoin’s price performance. Bitcoin has tested the $88,000 level several times, gaining strength despite the sell-off in traditional financial markets. The weakening dollar and the decline in U.S. stock markets have led investors to turn to alternative assets. Bitcoin is being favored by investors looking for a safe haven, and trading volume in ETFs reflects this increasing interest. On Monday, the total trading volume of 12 Bitcoin ETFs reached $3.75 billion, double the $1.55 billion volume recorded just four days ago.
The Weakening Dollar and the Rise of Bitcoin
US President Donald Trump’s harsh criticism of Fed Chairman Jerome Powell and calls for interest rate cuts have caused the dollar to lose value. While the dollar index (DXY) has fallen to its lowest level in the last three years, analysts evaluate this decline as a structural weakening. Experts such as Peter Chung state that the US share in global GDP has halved since World War II. This situation causes investors to turn to alternative assets in order to diversify dollar risk. Bitcoin stands out as an answer to this diversification quest.
Gold and Bitcoin Rise, Ethereum Falls
At a time when alternative assets such as Bitcoin and gold are gaining value, Ethereum (ETH) was negatively affected by this development. While $25.4 million was outflowed from spot Ethereum ETFs, the price of Ethereum lost 4% in 24 hours and fell to $1,581. This shows that investors are taking a cautious stance. On the other hand, Bitcoin showed a positive performance by exceeding $88,000 with a 0.76% increase in the same period.
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