Inflows into Bitcoin ETFs reached $936 million in a day, signaling a new bull run.
A sharp surge in inflows to Bitcoin ETFs marked a significant shift in market sentiment last week. Institutional investors rushed back into spot Bitcoin ETFs after a strong rebound in Bitcoin prices. The combination of price momentum and renewed optimism triggered the largest inflow of funds into ETFs recorded in 2025.
Bitcoin price rally stimulates inflows into ETFs
Bitcoin began the week of April 21 at around $87,500 after recovering from previous April lows. As prices steadily rose, spot Bitcoin ETFs experienced massive inflows, reversing a months-long trend of outflows. On April 21, the initial surge of new investments reached $387 million, initiating a rapid increase in inflows to spot Bitcoin ETF funds.
Rising Bitcoin prices triggered ETF inflows
Rising Bitcoin prices triggered ETF inflows
The highest inflow into Bitcoin ETFs of $936.5 million was recorded on April 22, setting a new daily record since November 2024. Inflows into ETFs exceeded $500 million a day, and inflow amounts were recorded up to this year. Sustained market momentum surpassed $93,000, prompting major institutions to show interest in ETFs.
Infection levels remained steady throughout the week until Bitcoin reached $95,000 on April 25. The market surge activated a feedback mechanism that linked ETF demand to spot market purchases. The breakthrough of a technical level prompted investors to quickly enter the market, leading to continuous price increase shifts.
Institutional appetite expands for Bitcoin ETFs
Excessive buying activity extended beyond a single company after it initially occurred last year. IBIT BlackRock led with significant creations; however, nearly all eleven U.S. spot Bitcoin ETFs recorded positive net inflows. Various investors demonstrated increased acceptance of Bitcoin exposure across different providers due to heightened demand.
Grayscale's GBTC product has been continually depleted by investors preferring new ETF products with lower costs. The movement towards direct Bitcoin exposure with competitive structures tempted investors to pull their money from indirect investments via GBTC and other competitors. The institutional approach changed direction as institutions took steps to enhance efficiency and reduce costs.
Before the Bitcoin ETF rally, they faced outflows of nearly $812 million by mid-April. Early market sentiment focused entirely on risk avoidance as trade conflicts between the U.S. and China intensified. Investor confidence increased during this period as political signals indicated a stabilization of conditions in the market environment.
Geopolitical stability increases risk appetite
In mid-April, the U.S. government began to show less resistance during its trade war with Chinese officials. Government officials stated that existing tariffs were impractical, suggesting the possibility of diplomatic peace in the near future. Market uncertainty decreased after this shift, prompting investors to invest in Bitcoin and risk assets.
U.S. President Donald Trump officially approved Jerome Powell as chairman of the Federal Reserve at that time. His official words brought calm to the market, alleviating concerns about potential interference in the Federal Reserve's activities. Bitcoin's recent stability encouraged investors to resume trading in volatile asset classes, particularly Bitcoin.
Bitcoin's returns outpaced the returns of U.S. stock market indices throughout this period, as it began to differentiate itself from traditional risk-based investments. During this time, Bitcoin and gold prices rose, indicating that currency is becoming an increasingly safe place for investment. Bitcoin's development attracted investors who combined their demand for growth prospects with protection against macroeconomic threats.
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