Bitcoin ETFs See Record Inflows as Crypto Enthusiasm Grows
Cryptocurrency investors surged back into the market last week, driven by a notable rally in Bitcoin, which saw significant inflows into Bitcoin and Ether exchange-traded funds (ETFs). The iShares Bitcoin Trust ETF (IBIT) alone experienced a record $1.5 billion in inflows—its largest of the year—bringing the total for Bitcoin-focused ETFs to over $3.2 billion. Other Bitcoin-focused funds also saw meaningful inflows, including the ARK 21Shares Bitcoin ETF (ARKB) with $620 million and Fidelity’s Wise Origin Bitcoin Fund (FBTC), which attracted $574 million.
Ethereum Products See First Net Inflows Since February
Ether products also saw their first net weekly inflows since February, according to Wintermute data, as both cryptocurrencies benefited from a broader risk-asset rally. The S&P 500, for example, gained 4.6% last week on growing optimism about potential tariff deals. Bitcoin surged by 10%, reaching around $94,000—its strongest week since the post-election market surge in 2020.
Bitcoin’s Resilience Amid Market Uncertainty
Bitcoin enthusiasts highlight the cryptocurrency’s resilience during periods of market turmoil, particularly in the context of the ongoing trade war under President Trump. While the S&P 500 has dropped nearly 6% this year, Bitcoin has largely remained flat, prompting some to view the cryptocurrency as a potential “digital gold.” As traditional safe-haven assets like gold have surged to record highs, Bitcoin’s performance is fueling discussions about its potential as an alternative asset during economic uncertainty.
Institutional Interest Drives Bitcoin ETF Growth
eToro’s Simon Peters points out that net spot ETF inflows are a key indicator of growing institutional interest in Bitcoin. The largest Bitcoin ETF, IBIT, with $56 billion in assets, has consistently attracted inflows even as broader markets experience volatility. Bitcoin’s rise and its perceived safe-haven potential seem to be gaining traction with both retail and institutional investors, with some speculating that Bitcoin could surpass gold as a store of value.
Long-Term Bitcoin Price Projections Gain Momentum
As Bitcoin surges, long-term price projections for the cryptocurrency continue to climb. Michael Saylor, a well-known Bitcoin advocate, predicts Bitcoin could reach $13 million by 2045. Saylor also suggested that IBIT could eventually surpass all other ETFs, including those tracking large companies like the Vanguard S&P 500 ETF (VOO), which currently holds more than $600 billion in assets.
While Saylor’s bold prediction was met with skepticism from some, including Nate Geraci, president of The ETF Store, who called it a “herculean feat” for IBIT to surpass VOO in size, the success of Bitcoin ETFs remains undeniable. The IBIT ETF’s growth is a reflection of the expanding institutional interest in Bitcoin, a trend that could reshape the landscape of both cryptocurrency and traditional finance.
