Source: The Block
The net inflow of the U.S. spot Bitcoin ETF reached $936 million, the largest single-day inflow since January 17. Analysts state that as Bitcoin's role as a potential 'safe haven' asset increases, institutional funds are flowing back into Bitcoin.
Capital Inflows
On Tuesday, the U.S. spot Bitcoin exchange-traded fund (ETF) saw its largest single-day net inflow since January 17, totaling $936 million. Analysts pointed out that this reflects increased market confidence in Bitcoin as a hedge against ongoing geopolitical and macroeconomic tensions.
Main Sources of Inflows: Data shows that 10 Bitcoin ETFs experienced positive inflows yesterday, with Ark and 21Shares seeing a net inflow of $267.1 million, Fidelity's FBTC net inflow of $253.8 million, and BlackRock's IBIT net inflow of $193.5 million. Over the past three days, the total net inflow into U.S. Bitcoin funds has exceeded $1.4 billion.
Rachael Lucas, a crypto analyst at Markets, stated: 'The inflows into ETFs signal a structural shift: institutional funds are flowing back into the crypto market, driven by macroeconomic imbalances, favorable supply dynamics, and increased acceptance of Bitcoin as a strategic asset class.'
Market Performance of Bitcoin
The significant net inflow into the spot Bitcoin ETF aligns with Bitcoin's ability to withstand market uncertainties under macroeconomic pressure. Bitcoin rose 6.4% in the last 24 hours, trading at $93,765 at the time of publication.
Min Jung, an analyst at Presto Research, stated that the market has renewed interest in Bitcoin as a potential hedge against inflation and geopolitical risks. Jung said, 'Although it may still be too early to call Bitcoin a fully mature 'safe haven', its relatively small decline during recent global risk events indicates that people are increasingly viewing it as a form of 'digital gold.'
Driving Factors
The appeal of Bitcoin is further driven by the weakening of the dollar, persistent inflation concerns, and market expectations for the Federal Reserve to reintroduce quantitative easing. Lucas from BTC Markets stated: “The spot Bitcoin ETF currently holds over $103 billion in Bitcoin, significantly reducing the circulating supply and causing sustained upward price pressure.”
Market Outlook
Although the U.S. tariff policy under Trump has placed a heavy burden on investors, traders have observed signs that U.S.-China tensions may cool.
Treasury Secretary Scott Bessent stated that he expects a 'cooling' in the trade war between Trump and China in the 'very near future'. On the same day, Trump retracted previous statements, confirming that he has 'no intention of firing Federal Reserve Chairman Jerome Powell', easing investor concerns about market uncertainty.
Looking ahead, Bitget COO Vugar Usi Zade stated that further weakening of the dollar and dovish signals from the Federal Reserve may drive more funds into BTC ETFs. He added: 'Global liquidity, geopolitical tensions, and pro-crypto policies like the Bitcoin bill will shape investor confidence and ETF demand.'
