Bitcoin ETFs See $3 Billion Inflows, Marking First Consecutive Weekly Gains Since March

U.S. Bitcoin ETFs have experienced a significant turnaround, recording over $3 billion in inflows this week, marking the first consecutive weekly gains since late March. This surge in inflows is a stark contrast to the heavy outflows seen earlier this month, including a notable $713.30 million in withdrawals by the 11th of April. The latest milestone signals a significant shift in investor sentiment, with the last back-to-back weekly inflows occurring during the week ending March 28, when $196.48 million was captured.

The recent influx into Bitcoin ETFs not only reflects a recovery in investor confidence but also sets a promising outlook for future gains. The surge in Bitcoin ETF inflows appears to mirror the broader bullish sentiment sweeping across the crypto market. Bitcoin climbed to $94,197.02 following a modest 0.50% increase over the past 24 hours, according to CoinMarketCap. Impressively, the asset has surged nearly 11% over the past week, pushing closer to the critical $94K mark. This strong price action has invigorated Bitcoin holders and fueled optimism across major altcoins like Ethereum [ETH], Ripple [XRP], and Solana [SOL], each recording gains of around 2%.

Ask Aime: What's the outlook for Bitcoin ETFs after this week's surge in inflows?

Data from Farside Investors revealed that spot Bitcoin ETFs attracted a staggering $442 million in inflows on the 24th of April alone. BlackRock’s iShares Bitcoin Trust (IBIT) contributed an impressive $327.3 million to the total. This marks an uninterrupted streak of positive flows since the 17th of April, highlighting a renewed wave of institutional confidence. Further reinforcing the bullish sentiment, U.S. spot Bitcoin ETFs collectively recorded a net inflow of 11,898 BTC in a single day, the largest since the 11th of November 2024. As Bitcoin’s momentum accelerates, the growing institutional participation could signal the beginning of a much stronger and more sustained rally across the broader crypto market.

Institutional investors continue to raise their bullish price targets for Bitcoin. A billion-dollar asset manager recently raised its “bull case” Bitcoin price target from $1.5 million to $2.4 million by the end of 2030. This increase is driven largely by institutional investors and Bitcoin’s increasing acceptance as “digital gold.” The asset manager also bumped up its “bear” and “base” case scenarios for the price of Bitcoin to $500,000 and $1.2 million, respectively. The positive momentum in Bitcoin ETFs is further supported by the recent award given to BlackRock’s iShare Bitcoin ETF (IBIT). On April 23, IBIT was awarded the “Best New ETF” at the annual ETF awards. This recognition, along with the ETF's designation as the "Crypto ETP of the year," highlights the growing acceptance and popularity of Bitcoin ETFs in the investment community.

The surge in inflows and the positive outlook from institutional investors suggest that Bitcoin ETFs are gaining traction in the investment community. The rapid shift in flows and the renewed interest in Bitcoin ETFs indicate a growing acceptance of Bitcoin as a viable investment option. As the investment community continues to embrace Bitcoin, it is likely that we will see further growth and development in the Bitcoin ETF market. The strong inflow week has turned April into a positive month for Bitcoin ETFs, with total net inflows for April reaching approximately $2.26 billion. This surge comes amid ongoing financial and macroeconomic uncertainty, which has led to a volatile April with nine out of the total 18 trading days being outflow days. The rapid shift in flows has been noted by ETF analyst, who described the situation as ETFs being on a "Bitcoin bender." The analyst also forecasted that some of these flows may be due to the "basis trade back in effect." This indicates a renewed interest in Bitcoin ETFs, potentially driven by institutional investors and the increasing acceptance of Bitcoin as "digital gold."