Bitcoin Spot ETFs See Historic Inflow as Institutional Capital Returns with Force
US Bitcoin spot exchange-traded funds (ETFs) experienced a monumental surge in capital on Tuesday, recording a staggering $753.7 million in single-day net inflows. This marks the largest single-day influx in nearly three months, signaling a powerful return of institutional investors who are actively re-engaging with the digital asset market after year-end portfolio adjustments.
A Flood of Institutional Capital
According to data compiled by SoSoValue, the 12 US Bitcoin spot ETFs collectively attracted $753.7 million, setting a new high since October 7 of last year. Fidelity’s FBTC led the charge with an impressive $351 million in inflows, followed by Bitwise’s BITB, which secured $159 million. BlackRock’s IBIT also saw significant interest, bringing in $126 million.
Nick Ruck, Research Director at LVRG Research, highlighted that this robust return of ETF capital underscores a comprehensive recovery in institutional demand. “After a period of hedging and cautious observation towards the end of last year, investors are now aggressively reallocating capital into the crypto space,” Ruck noted.
The positive sentiment wasn’t confined to Bitcoin alone. Ethereum spot ETFs also benefited from this renewed confidence, registering $130 million in net inflows on the same day. This indicates a broader resurgence of investor trust across the entire cryptocurrency market.
Macroeconomic Tailwinds and Regulatory Clarity
What’s driving this significant influx of funds at this particular moment? Vincent Liu, Chief Investment Officer at the prominent quantitative trading firm Kronos Research, points to the “clarification of the macroeconomic landscape” as a pivotal catalyst.
The latest US Consumer Price Index (CPI) data, released on Tuesday, showed that while inflation remains elevated, it has notably receded from its peak. This development has bolstered market expectations for potential interest rate cuts by the Federal Reserve, subsequently boosting investor appetite for risk assets, including cryptocurrencies.
Concurrently, positive news emerged from the policy arena. The US Senate Banking Committee is actively preparing to revise and vote on a cryptocurrency market structure bill on Thursday. The market widely anticipates that this legislative effort will pave the way for a clearer and more supportive legal framework for digital assets, reducing regulatory uncertainty.
Market Impact and Structural Strengths
The renewed confidence has directly translated into price action. Bitcoin surged 3% in the past 24 hours, trading at $94,610 at the time of writing. Ethereum demonstrated even stronger momentum, climbing 6.21% to reach $3,324.
Vincent Liu provided further insight into the underlying market dynamics: “This rally is primarily fueled by the sustained inflow of ETF capital, which is absorbing supply at a pace far exceeding miners’ output, creating a structural bullish trend. Moreover, the increasingly clear regulatory outlook, coupled with the forced covering of over-leveraged short positions, has further propelled price movements. Crucially, this market upswing is predominantly driven by genuine spot buying rather than speculative leveraged trading.”
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