Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
On Monday, Bitcoin ETFs recorded their most substantial single-day inflows since January, signaling a renewed interest in the cryptocurrency as the market rebounds from yearly lows.
These investment vehicles, which track the price of Bitcoin, gained $381 million in inflows, the highest since they attracted $588 million on January 29, according to data from analytics platform SoSoValue.
Bitcoin Rebounds With Strong ETF Inflows
The recent surge in ETF activity comes on the heels of a tumultuous period for Bitcoin and the broader crypto market, exacerbated by President Trump’s trade policies, which have contributed to investor hesitance toward high-risk assets like crypto.
However, this week’s inflows indicate a shift in sentiment, as investors reassess their strategies following panic selling triggered by Trump’s recent tariff announcements.
Michele Crivelli, founder of digital asset issuer NexBridge, noted that the current uptick in ETF inflows reflects a tactical shift in asset allocation. “Bitcoin is increasingly viewed as a legitimate hedge, much like gold, especially in uncertain market conditions,” he told Fortune.
This perspective is gaining traction as Bitcoin rebounds from below $75,000 earlier this month, rising by 3% on Tuesday to surpass the $92,000 mark.
Institutional Shifts Amid Dollar Depreciation
The backdrop for this shift includes ongoing tensions surrounding tariffs and the Federal Reserve’s (Fed) monetary policy. Trump has intensified his focus on tariffs and is reportedly considering whether he has the authority to dismiss Federal Reserve Chair Jerome Powell—a move that could further impact market sentiment.
The US dollar has depreciated as a result of these policies, hitting its lowest value since 2022, which has prompted investors to seek refuge in assets like Bitcoin that operate outside the control of central banks.
Some analysts suggest that the growing uncertainties in the traditional monetary system are driving institutional investors toward Bitcoin.
Thomas Erdösi, head of product at crypto data company CF Benchmarks, remarked, “With growing uncertainty in the traditional monetary system and the US regulatory environment shifting toward constructive engagement, institutional investors are clearly recalibrating, and Bitcoin is emerging as the primary beneficiary.”
While Monday’s inflows are encouraging, they do not approach the record highs seen in the Bitcoin ETF market. Since their launch in January, Bitcoin ETFs have proven to be some of the most successful in history.
BlackRock’s ETF, for instance, has amassed an impressive $50 billion in inflows over just 11 months, and in February, Bitcoin ETFs achieved a remarkable milestone by pulling in $1 billion in a single day.
While trading at approximately $92,759 when writing, the market’s leading cryptocurrency is still 14% below the record high of $109,000 reached back in January.
Featured image from DALL-E, chart from TradingView.com
