On April 25, 2025, the cryptocurrency market witnessed a strong buying wave from spot Bitcoin ETFs in the US, with a total net buying value reaching $3.062 billion in the past week – the highest in 5 months. Is this a sign of a new growth phase for Bitcoin and the crypto market? Let's analyze in detail.
Bitcoin Spot ETF: Net Buying Cash Flow Reaches $3.062 Billion
Last week, 11 spot ETFs in the US recorded a net buying cash flow of $3.062 billion, marking the first bright trading week in April 2025. This is the second-best performance in the history of Bitcoin ETFs, only behind the $3.35 billion at the end of November 2024. Leading the way is BlackRock's IBIT with $1.45 billion, accounting for nearly half of the total inflow. Following are ARKB from Ark Invest ($621 million), FBTC from Fidelity ($574 million), and BTC from Grayscale ($103.3 million).
Notably, the trading sessions on April 22 and 23 recorded inflows exceeding $900 million each day, showing investor sentiment has turned optimistic after a long period of suppression. This cash flow coincided with the price surge of Bitcoin, as BTC rose more than 10% from $85,100 to $95,780, before correcting to $93,300.
Context: From Capital Withdrawal to Recovery
From the end of October to mid-December 2024, spot Bitcoin ETFs peaked with a net buying cash flow of over $17 billion. However, 4 months later, these funds faced continuous withdrawals, impacted by fluctuations in the US stock market due to President Donald Trump's tariff policies. The peak came at the end of February 2025, when ETFs recorded a record withdrawal of $1.1 billion in one day (February 25) and $2.6 billion for the entire week – the highest selling point in history.
The recovery last week came from the cooling of trade tensions with China and dismissing rumors of firing Fed Chairman Jerome Powell for not lowering interest rates. The weakening US dollar (USDX hitting a new low of 97.9 on April 21, 2025, according to FXCE) also supported Bitcoin prices and other risk assets. However, with Trump's unpredictability, investors still need to be cautious of his potential policy shifts, which could cause volatility in the global financial market.
Ethereum ETF: Signs of a Mild Recovery
At the same time, spot Ethereum ETFs also recorded inflows of $118 million, ending a prolonged withdrawal streak since mid-month. However, ETH prices remain disappointing, down 45% in the last quarter (currently $1,615), causing Wall Street investor sentiment towards Ethereum to decline. The number of sell-offs outweighs buy-ins, indicating Ethereum is losing its allure compared to Bitcoin in the eyes of institutional investors.
Impact on the Crypto Market
The buying wave from Bitcoin ETFs brings many positive signals:
Boosting institutional confidence: The $3.062 billion cash flow from major funds like BlackRock, Ark Invest, and Fidelity shows strong confidence in Bitcoin, similar to accumulation moves from Strategy (531,644 BTC), Metaplanet (4,855 BTC), and Twenty One (Bitcoin stash of $3.9 billion).
Driving Bitcoin prices: The increase in demand from ETFs reduces the circulating supply of BTC, especially as 'whales' absorb over 300% of the annual issuance (according to Cointelegraph), creating long-term upward pressure.
Supporting the crypto ecosystem: The recovery of Bitcoin ETFs could spill over into altcoins, although Ethereum is still facing difficulties. Other initiatives, such as CME Group's XRP futures or El Salvador's tokenized real estate 'sandbox', also contribute to invigorating the market.
Future Prospects
The net buying cash flow of $3.062 billion from Bitcoin ETFs is a strong signal indicating that the crypto market is recovering after a difficult period. If Trump continues to maintain a friendly stance towards crypto and the Fed keeps an open policy (such as lifting restrictions on crypto), Bitcoin may continue its upward momentum, pulling the entire industry forward. However, investors need to closely monitor Trump's and the Fed's moves to assess risks, especially in the context of ongoing volatility in the global financial market.
Conclusion: Will Bitcoin Continue to Shine?
With a net buying cash flow of $3.062 billion from Bitcoin ETFs – the highest in 5 months – and BTC price increasing more than 10% to $93,300, the crypto market is embracing a positive wave. Although Ethereum is still struggling, the recovery of Bitcoin, along with friendly policies from Trump and the Fed, could open up a new growth phase. Could this be the beginning of a crypto market explosion? Investors should be ready to seize the opportunity.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.