Bitcoin ETFs See $917M Inflows, Reversing April Outflow Trend

Bitcoin ETFs experienced a significant surge in inflows on Apr. 23, with $917 million flowing into these investment vehicles. This marked a continuation of the previous day's $912.7 million inflow, bringing the total for the week to over $2 billion. This influx of capital, equivalent to approximately 19,300 BTC at current prices, has effectively reversed the outflow trend that dominated the early part of April.
Leading the charge was BlackRock’s IBIT, which attracted $634.2 million in inflows. Ark’s ARKB and Fidelity’s FBTC also saw substantial inflows, with $129.5 million and $124.4 million respectively. Bitwise’s BITB was the only ETF to experience an outflow, shedding $15.2 million, although this was a minor adjustment following a week of steady inflows. VanEck’s HODL picked up $5.3 million, while the remaining issuers remained flat. Grayscale’s GBTC saw no flows for the second consecutive day, a notable pause after the heavy redemptions it recorded at the beginning of the month.
The renewed demand for Bitcoin ETFs appears to be driven by several factors. Firstly, Bitcoin’s price surge above the $90,000 mark on Apr. 22 sparked momentum trading. The spot price jumped from approximately $87,500 at Monday’s close to $93,480 by Tuesday’s settlement, reaching an intraday high near $94,700 the following day. This rally squeezed shorts and restored investor confidence.
Additionally, macro hedging flows seem to be increasing in response to recent tariff announcements, which have stoked inflation expectations. US breakeven rates are rising, and real yields have stalled, making a 0-yield asset with a fixed issuance schedule comparatively appealing. This has likely contributed to the surge in Bitcoin ETF inflows.
The leadership dynamics among Bitcoin ETF issuers are also shifting. IBIT now controls more than 50% of cumulative inflows, while ARKB is closing the gap with FBTC. If the current pace of inflows persists, even at half the current rate, ETFs could absorb roughly 50,000 BTC per month. This would far outstrip the supply from miners, forcing the market to rely more heavily on secondary sellers.
The overall trend indicates a shift back towards accumulation, with no issuer showing net selling on Apr. 23, except for the modest Bitwise redemption. This suggests that investors are increasingly bullish on Bitcoin, driving significant capital into these ETFs. The continued inflows into Bitcoin ETFs highlight the growing institutional interest in the cryptocurrency market, despite the volatility and regulatory uncertainties that have characterized the space in recent years.

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