Institutional investors are sounding the call for capital deployment once again. Amidst growing market expectations of a potential turning point in geopolitical risks, U.S. Bitcoin spot ETFs have emerged as “capital-attracting behemoths,” drawing in nearly $1 billion in a single week. This impressive inflow not only marks the highest record since mid-January but also extends a streak of three consecutive weeks of net inflows.
According to SoSoValue statistics, U.S. Bitcoin spot ETFs recorded a net inflow of $996.4 million last week, making it the largest single-week net inflow since the week of January 16. Extending the timeframe, these funds have collectively attracted over $1.8 billion in capital over the past three weeks.
Last week’s capital influx was primarily spearheaded by BlackRock’s IBIT, currently the largest Bitcoin ETF by net asset value, which alone pulled in $906 million. Additionally, last week marked the first full trading week for Morgan Stanley’s MSBT (launched on April 8), which saw a net inflow of $71 million.
Ethereum spot ETFs also demonstrated robust performance, registering a net inflow of $275.8 million for the week, their best showing since January 16.
Geopolitical Easing Expectations Bolster Institutional Risk Appetite
Jeff Mei, COO of cryptocurrency exchange BTSE, commented, “Institutional investors broadly believe that the tensions between the U.S. and Iran are on the cusp of a substantial and permanent de-escalation. Consequently, they are aggressively increasing their long positions in Bitcoin ETFs.”
The two-week ceasefire agreement between the U.S. and Iran is set to expire this Wednesday, with both sides continuing to engage in peace negotiations. However, just as institutions were assessing the potential end of the conflict, news broke that the U.S. had seized an Iran-flagged cargo ship in the Strait of Hormuz, introducing renewed complexity to the situation.
U.S. President Trump recently announced that American negotiators are en route to Islamabad, Pakistan’s capital, for potential talks with Iran. Yet, according to Iranian sources, Iran refuses to return to the negotiating table unless the U.S. lifts its blockade of the Strait of Hormuz.
Under the seemingly renewed shadow of geopolitical tension, the cryptocurrency market took a breather today (the 20th). According to CoinGecko data, Bitcoin experienced minor fluctuations over the past 24 hours, rising 0.1% to $75,146, while Ethereum edged down 0.1% to $2,311.
Looking ahead, BTSE COO Jeff Mei observed that while retail investors’ willingness to enter the market is recovering, the key to sustained upward price breakthroughs remains in the hands of the U.S. Federal Reserve (Fed). The market, he noted, requires more interest rate cuts. He stated:
Before the outbreak of the U.S.-Iran conflict, interest rate policy was already the primary variable influencing cryptocurrency capital flows, and this factor will continue to dominate market sentiment in the medium to long term.
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