Record Inflows into Bitcoin Spot ETFs Following Market Volatility
April 22 saw nearly $1 billion flow into Bitcoin spot ETFs, according to Bloomberg Intelligence data. This surge in capital is part of a broader trend, with leveraged long ETFs and those holding safe assets like cash and gold also seeing record inflows.
Leveraged long ETFs and cash & gold ETFs have experienced significant fund inflows, driven by investors utilizing two strategies: investing in falling prices or hedging risk.
Eric Balchunas, Bloomberg Intelligence analyst, highlighted this trend, noting that these strategies are actively being executed amidst market uncertainty.
The fund inflow spike followed Trump's tariff announcement on April 2, which triggered significant market volatility. While the S&P 500 dropped by about 5%, Bitcoin showed resilience, recovering without major losses.
On April 22, Bitcoin's spot price reached $90,000 for the first time in six weeks, sparking the $1 billion inflow into $BTC ETFs. As of April 23, Bitcoin traded above $93,000.
This signals growing institutional confidence and investor interest in Bitcoin, despite broader market challenges.
