Bitcoin ETFs See $3.06 Billion Inflows in Week Amid Bullish Outlook

Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced a significant surge in inflows this week, totaling over $3 billion. This marks the first full week of consecutive inflows in five weeks, with the last such occurrence ending on March 21. On April 25, the 11 spot Bitcoin (BTC) ETFs saw $380 million in inflows, contributing to a weekly total of around $3.06 billion over five consecutive inflow days.

The rapid shift from minimal to substantial inflows was highlighted by an ETF analyst, who noted the swift transition from "1st gear to 5th gear." The analyst attributed this surge to the "basis trade back in effect," suggesting that investors are capitalizing on the price differential between spot and futures markets.

Despite the volatility in April, with nine out of the 18 trading days experiencing outflows, the strong inflow week has turned the month positive. Total net inflows for April now stand at approximately $2.26 billion, indicating a renewed interest in Bitcoin ETFs amidst ongoing financial and macroeconomic uncertainty.

The positive momentum in Bitcoin ETFs was further bolstered by the recognition of BlackRock’s iShare Bitcoin ETF (IBIT). On April 23, IBIT was awarded the “Best New ETF” at the annual ETF awards, and it was also named the recipient of Crypto ETP of the year. This accolade underscores the growing acceptance and institutional interest in Bitcoin as a viable investment asset.

The surge in inflows coincides with institutions raising their bullish price targets for Bitcoin. A billion-dollar asset manager recently increased its “bull case” price target for Bitcoin from $1.5 million to $2.4 million by the end of 2030. This optimistic outlook is driven by the increasing acceptance of Bitcoin as “digital gold” and the growing institutional investment in the cryptocurrency. The asset manager’s “bear” and “base” case scenarios for Bitcoin were also adjusted upwards to $500,000 and $1.2 million, respectively, reflecting a more bullish stance on the cryptocurrency's future value.