Bitcoin ETFs Surge 48% With $1 Billion Inflows

Coin WorldFriday, May 23, 2025 4:31 pm ET
2min read

Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a significant surge in investments on Thursday, with over $1 billion in new investments. This marks the highest combined inflows in five months, highlighting the growing interest in crypto-focused products over the past two weeks. The majority of these inflows, amounting to $877 million, were directed towards BlackRock's iShares Bitcoin Trust (IBIT), making it the third-highest daily total for the fund. Overall, Bitcoin funds received $935 million in inflows, indicating a strong momentum in the market.

Sumit Roy, a senior ETF analyst, noted that this surge is part of a broader trend, particularly with IBIT, which has not seen outflows since April 9. The analyst also pointed out the strong relationship between Bitcoin's price and investment flows, suggesting that this trend is likely to continue. Bitcoin's price has risen by more than 48% since early April, driven by factors such as reduced trade tensions and favorable inflation reports. Investors are increasingly viewing Bitcoin as a safe-haven asset amidst volatile macroeconomic conditions.

IBIT has accumulated over $1.9 billion in assets in the first four days of this week alone. This is the third time in the last month that the fund has collected more than a billion dollars in assets during a single week. The fund has totaled nearly $41 billion in net inflows since its debut in January 2024, significantly outperforming other funds in the space. Bitcoin reached a new record high this week, hitting a price of $111,814, according to crypto price data firm CoinGecko.

Ethereum ETFs also saw substantial inflows on Thursday, with more than $110 million in investments. The Grayscale Ethereum Trust (ETHE) and Fidelity Ethereum Trust (FETH) led the way, each receiving over $40 million. Ethereum's price gains, while initially lagging behind Bitcoin, have outpaced other assets over the past month. Ethereum was recently trading at $2,565, reflecting a 46% increase over the past 30 days. BlackRock's iShares Ethereum Trust (ETHA) has received over $4.3 billion in net inflows, more than double the investment in the next closest competitor. The eight funds currently trading have generated more than $2.7 billion in net inflows, with Grayscale's ETHE accounting for nearly $4.3 billion in net outflows due to its higher fee structure.

Despite the strong inflows, Ethereum ETFs are not seeing the same level of demand as Bitcoin funds. Analysts suggest that while flows are strong, the underlying price of Ethereum is dragging down asset levels. This indicates that while there is interest in Ethereum ETFs, the market is still more focused on Bitcoin. Overall, the surge in investments in Bitcoin and Ethereum ETFs underscores the growing appetite for crypto-focused products and the potential for further growth in the market.

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