Bitcoin ETFs See $588.55 Million Inflows in 11 Days Amid Geopolitical Calm and Regulatory Shifts

U.S. spot Bitcoin ETFs have experienced a notable surge in investor interest, with a streak of 11 consecutive days of net inflows as of June 24. This period saw a total inflow of $588.55 million, marking the highest single-day inflow in over a month. Leading the charge were BlackRock’s IBIT fund, which attracted $436.32 million, Fidelity’s FBTC with $85.16 million, and ARK Invest’s ARKB with $43.85 million. These three funds collectively accounted for over 95% of the day’s total inflows.

The significant inflow of capital into Bitcoin ETFs was driven by a combination of geopolitical developments and regulatory changes. A ceasefire agreement between Israel and Iran, announced by former U.S. President Donald Trump, eased fears of escalating conflict in the Middle East. This geopolitical tranquility led to a broader shift towards risk assets, including Bitcoin, which surged by 6.1% to above $106,000, indicating renewed bullish momentum.

Additionally, the Federal Reserve’s decision to remove the term “reputational risk” from its guidelines for supervising banks on June 23 is expected to ease compliance barriers for banks looking to engage with digital asset firms. This regulatory shift is anticipated to accelerate the integration of cryptocurrencies into traditional banking systems, particularly in areas such as custody and settlement services.

Institutional demand for Bitcoin continues to grow, with MicroStrategy adding $26 million worth of Bitcoin to its holdings, bringing its total to 592,345 BTC. Investor Anthony Pompliano launched ProCap, a Bitcoin treasury firm with $387 million in assets and ambitions to reach $1 billion. Furthermore, Trump Media filed with the SEC to list the “Truth Social Bitcoin and Ethereum ETF,” which will consist of 75% Bitcoin and 25% Ethereum.

Bitcoin’s increasing popularity as a treasury tool is reflected in its growing portfolio percentage. According to a recent report, Bitcoin now occupies 30.95% of investors’ portfolios, up from 25.4% in November 2024. This shift indicates a broader acceptance of Bitcoin as a safe investment within diversified portfolios.

Market experts, including Kadan Stadelmann, CTO at Komodo Platform, note that despite macroeconomic uncertainties, buyers are capitalizing on price drops to accumulate more Bitcoin. The sustained inflow into ETFs suggests a maturing market, with institutional players doubling down on their Bitcoin holdings. This trend is likely to continue as more businesses adopt Bitcoin as part of their treasury strategies.