BlackRock and Fidelity's ETFs led the inflows as investors reposition themselves in light of Trump's tax bill and changes in market conditions.

Bitcoin exchange-traded funds (ETFs) recorded inflows of $601.8 million on Thursday (3), their strongest performance in over a month as investors returned to betting on crypto asset products amid renewed optimism for risk assets.

This Friday (4), Bitcoin is facing a 0.8% decline on the day, trading at $108,964, according to CoinGecko. In Brazilian reais, the cryptocurrency is priced at R$ 593,148.

The massive inflow represents the best daily performance of Bitcoin ETFs in over a month, surpassing the previous record of $588.6 million set on June 24.

BlackRock's IBIT and Fidelity's FBTC accounted for most of Thursday's movement, attracting $224.5 million and $237.1 million, respectively, according to data from Farside Investors.

Other products recorded smaller inflows, with Ark Invest's ARKB totaling $114.2 million, while Grayscale's GBTC and Franklin Templeton's EZBC showed no net flow.

Investors anticipate 'looser liquidity conditions'

The influx of institutional money occurs as investors position themselves for what many believe will be looser financial conditions under expanded policies from the Trump administration.

ETFs remain the primary instrument for large-scale exposure to Bitcoin, offering regulated access without the operational complications of direct ownership of cryptocurrencies.

'I think what is driving the flow to the ETFs is the expectation of looser liquidity conditions,' said Peter Chung, head of research at Presto Labs, to Decrypt. 'It seems that trading with a greater risk appetite is gaining momentum, and for institutions, ETFs are the easiest way to access exposure to Bitcoin.'

Where is the price of Bitcoin headed?

On Thursday, the price of Bitcoin briefly surpassed $110,000 following the release of the U.S. jobs report, which showed the creation of 147,000 new jobs in June, against a forecast of 110,000, before retreating as the unemployment rate fell to 4.1%, below the expectation of 4.3%.

'It is true that the employment data for June released yesterday was considered aggressive, but that did not prevent the S&P 500 from rising, which implies that the market is more willing to focus on the long-term impact of the fiscal expansion resulting from Trump's tax bill,' Chung stated.

U.S. President Donald Trump is set to sign his 'Big Beautiful Bill' this Friday, Independence Day, after the legislation was approved by both houses of Congress.

The tax-cutting bill, which raises the debt ceiling, has left crypto markets on alert, with businessman Arthur Hayes warning that it could trigger a temporary liquidity drain as the Treasury replenishes its General Fund.

Chung noted that ETF flow data typically has a one- or two-day lag, stating that the $600 million figure likely reflects activity from July 2, 'before the tax bill was approved,' although some investors may have 'bought ETFs already anticipating this in advance.'