Bitcoin ETFs See $388.3 Million Inflows Amid Middle East Tensions

U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced an eight-day streak of inflows, totaling $388.3 million on Wednesday, despite the escalating tensions in the Middle East. This sustained inflow of capital into Bitcoin ETFs indicates a growing investor confidence in the digital asset, even amidst geopolitical uncertainties. The inflows have been substantial, with BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the way with $278.9 million and $104.4 million in inflows, respectively. This resilience in the face of regional conflict suggests that investors are viewing Bitcoin as a safe haven asset, similar to gold, during times of geopolitical instability.

The strong inflow on June 18 shows institutional confidence remains firm as Bitcoin (BTC) held steady in the $105,000 range despite renewed Iran-Israel tensions initially rattling the markets. The pattern closely resembles Bitcoin’s price reaction to Russia’s invasion of Ukraine in February 2022, and the Israel-Palestine conflict in October 2023, which saw Bitcoin fall around 7% before stabilizing days later. The Bitwise Bitcoin ETF (BITB) was the only other product to record an inflow on June 18 at $11.3 million, while the Bitcoin ETFs issued by ARK Invest, Invesco, Franklin Templeton, Valkyrie, VanEck and WisdomTree failed to register inflows on the day. Only Grayscale’s Bitcoin products were in the red, with the Grayscale Bitcoin Trust ETF (GBTC) bled $16.4 million, while the asset manager’s low-fee Grayscale Bitcoin Mini Trust also saw $10.1 million in outflows.

After a slow first few months of 2025, inflows into the spot Bitcoin ETFs have picked up pace recently, tallying a staggering $11.2 billion since April 17. There have been only eight days of outflows since then, during which Bitcoin’s price has risen from below $85,000 to $104,950. More than $46.3 billion has flowed into the 11 Bitcoin products, led by BlackRock’s IBIT and Fidelity’s FBTC at $50.6 billion and $11.5 billion, respectively. The tally includes $23.2 billion worth of outflows from Grayscale’s GBTC.

This trend highlights the growing acceptance and integration of Bitcoin into mainstream investment portfolios. The total inflows over the five-day period exceeded $1.46 billion, demonstrating the robust demand for Bitcoin ETFs despite the market volatility caused by the Middle East tensions. The sustained inflows into Bitcoin ETFs also reflect the broader trend of institutional adoption of cryptocurrencies. Major financial institutions, including BlackRock, have been actively investing in Bitcoin ETFs, contributing to the overall inflows. This institutional involvement adds credibility to the asset class and attracts more retail investors, further fueling the inflows.

The resilience of Bitcoin ETFs in the face of geopolitical tensions is a testament to the growing maturity of the cryptocurrency market. Investors are increasingly viewing Bitcoin as a store of value and a hedge against inflation and geopolitical risks. The sustained inflows into Bitcoin ETFs, despite the price fluctuations and market volatility, indicate that investors are taking a long-term view of the asset, focusing on its potential for future growth and stability. The strong flows come as the Securities and Exchange Commission’s Crypto Task Force has taken a more collaborative approach with industry players and recently clarified that protocol-level staking isn’t a securities transaction — potentially opening the door to Ether ETFs with staking features in the future.

In conclusion, the eight-day inflow streak into U.S. spot Bitcoin ETFs, despite the Middle East tensions, underscores the growing investor confidence in Bitcoin as a safe haven asset. The substantial inflows, led by major financial institutions, reflect the broader trend of institutional adoption and the maturing of the cryptocurrency market. As geopolitical uncertainties continue to shape global markets, Bitcoin ETFs are emerging as a resilient and attractive investment option for both institutional and retail investors.