Bitcoin ETFs See $3.75B Inflows, 26.4% Recovery in Assets

Bitcoin ETFs have experienced a remarkable resurgence, with seven consecutive days of net inflows totaling over $3.75 billion. This influx of capital marks a significant shift in investor sentiment, particularly after weeks of outflows attributed to escalating trade tensions. The strong performance is led by BlackRock’s IBIT fund, which recorded $970.9 million in net inflows on April 28, making it the fund’s second-best day ever. This surge in inflows has pushed total Bitcoin ETF assets to $109.3 billion, a 26.4% recovery from the local low of $85.7 billion on April 8.

The recent string of inflows began on April 17, ending a period of outflows that had persisted for several weeks. This seven-day streak is the longest since March, when funds saw consistent inflows from March 14 through March 27. The current streak includes the second-largest weekly inflow on record, with $3.06 billion entering Bitcoin ETFs during the week ending April 25. The price of Bitcoin has responded positively to this influx of institutional capital, gaining approximately 7.5% in value during the same seven-day period.

Ethereum ETFs are also showing signs of recovery, with three consecutive days of net inflows totaling $231.8 million. BlackRock’s ETHA fund led the way with particularly strong performance on April 28, attracting $67.5 million. This marks ETHA’s best day since February 4, when it recorded an impressive $276.2 million in inflows. Ethereum ETFs now manage $6.2 billion in assets, up from an all-time low of $4.98 billion on April 4. However, the recovery remains modest compared to the sector’s peak of $14.3 billion reached on December 16 last year.

Grayscale, a major player in the crypto ETF space, is pushing for regulatory changes that would benefit Ethereum ETF holders. The firm recently met with the SEC’s Crypto Task Force to advocate for allowing Ethereum exchange-traded products to participate in staking. According to Grayscale’s estimates, US-based Ethereum ETP providers could miss out on $5.5 billion worth of ETH staking rewards over the next decade if current prohibitions remain in place. The company claims that ETH ETPs have already foregone approximately $61 million as a result of not being able to participate in staking from launch through February 2025. These rewards have instead gone to non-US ETH ETPs and other non-ETP stakers, creating a competitive disadvantage for US-based products.

The recent positive trends for both Bitcoin and Ethereum ETFs come as the crypto market shows signs of stabilization following weeks of volatility tied to global economic concerns. The strong performance of Bitcoin ETFs, particularly BlackRock’s IBIT fund, highlights the growing interest in institutional investment in the crypto space. The recovery of Ethereum ETFs, while modest, indicates a potential resurgence in the sector. The push for regulatory changes by Grayscale underscores the ongoing efforts to enhance the competitiveness of US-based crypto ETFs in the global market.