Bitcoin exchange-traded funds (ETFs) have experienced a surge in demand, driven by the latest record inflows for BlackRock’s iShares Bitcoin Trust (IBIT). This follows seven consecutive days of net inflows for the products, totaling over $3.7 billion since April 17th, a stark contrast to previous market volatility.
Blackrock’s IBIT broke records on April 28th with over $970.9 million in new investments. This marked the second-highest inflow ever recorded, exceeding even the record-breaking inflows following the US elections in November 2022. While most other Bitcoin ETFs saw losses, including Fidelity’s FBTC, Bitwise’s BITB, Ark Invest’s ARKB, and Grayscale’s GBTC, BlackRock’s IBIT remained resilient. The ETF’s assets under management (AUM) surpassed $42 billion, with an average daily inflow of $130.2 million since its launch in January 2023.
Experts like Eric Balchunas, a Bloomberg ETF expert, have noted the positive trend, calling it a “two steps forward after one step back” observation that reflects investor confidence in Bitcoin during challenging economic times.
The rise of Bitcoin ETFs aligns with the broader market recovery. However, Ethereum ETFs experienced some negative trends due to global economic uncertainty and tariffs.
Ethereum spot ETF flows, while experiencing some growth, haven’t reached the same impressive levels as Bitcoin ETFs. Despite recent positive trends, Ethereum ETFs still show signs of a market correction.