US Bitcoin ETFs: Surging Inflows Defy Geopolitical Tensions

Despite lingering concerns over geopolitical tensions, **US Bitcoin ETFs** have demonstrated remarkable resilience, extending their inflow streak and attracting significant capital. This trend signals continued institutional confidence in the digital asset space, even when traditional markets show signs of volatility.

Strong **Bitcoin ETF Inflows** Continue

The US-based spot Bitcoin exchange-traded funds recently marked their eighth consecutive day of net inflows. On a single Wednesday, these products collectively recorded a substantial $388.3 million in fresh capital. This consistent demand highlights a strong appetite for Bitcoin exposure through regulated investment vehicles, even as initial market jitters from the Israel-Iran situation began to subside.

Leading the charge in these recent **Bitcoin ETF inflows** were two prominent players:

• BlackRock’s iShares Bitcoin Trust (**BlackRock IBIT**): Pulled in a significant $278.9 million.
• Fidelity Wise Origin Bitcoin Fund (**Fidelity FBTC**): Added a strong $104.4 million.

Only one other product, the Bitwise Bitcoin ETF (BITB), registered an inflow on that particular day, adding $11.3 million. Several other funds, including those from ARK Invest, Invesco, Franklin Templeton, Valkyrie, VanEck, and WisdomTree, did not record inflows.

**Spot Bitcoin ETFs** Hold Steady Amidst Tensions

The steady performance of **Spot Bitcoin ETFs** coincides with Bitcoin’s price stability. Despite the initial market reaction to renewed tensions in the Middle East, Bitcoin held firm in the $104,000-$105,000 range. Crypto analytics platform Santiment noted that this pattern of initial ‘risk-off’ followed by stabilization is typical in geopolitical crises.

This current situation mirrors Bitcoin’s price behavior during previous events, such as Russia’s invasion of Ukraine in early 2022 and the Israel-Palestine conflict in late 2023. In both instances, Bitcoin saw an initial price dip (around 7% in previous cases) before stabilizing days later, supported by factors like consistent ETF inflows and a lack of escalating military actions.

Grayscale’s Position in the Market

While most **Spot Bitcoin ETFs** saw positive flows, Grayscale’s Bitcoin products experienced outflows. The Grayscale Bitcoin Trust ETF (GBTC) saw $16.4 million in outflows, and their lower-fee Grayscale Bitcoin Mini Trust also registered $10.1 million in outflows on the same day. This continues a trend where some investors may be reallocating from GBTC to newer, lower-fee ETF options.

Overall ETF Landscape Since April

The recent eight-day streak is part of a larger positive trend for **US Bitcoin ETFs**. After a slower start earlier in the year, inflows have significantly accelerated since mid-April. Since April 17, a staggering $11.2 billion has flowed into these products. During this period, there have been only eight days of outflows, and Bitcoin’s price has risen from below $85,000 to around $104,950.

Collectively, the 11 US spot Bitcoin products have seen over $46.3 billion in total inflows. **BlackRock IBIT** and **Fidelity FBTC** remain the dominant players in terms of total accumulated assets, with approximately $50.6 billion and $11.5 billion respectively. This cumulative figure includes about $23.2 billion in outflows from Grayscale’s GBTC since its conversion.

Ether ETFs Also See Renewed Interest

Beyond Bitcoin, the US spot Ether (ETH) ETFs are also showing positive momentum. After a 19-day inflow streak was broken, they rebounded with three consecutive days of inflows. On the same Wednesday that Bitcoin ETFs saw strong numbers, Ether ETFs recorded over $19.1 million in fresh capital. BlackRock’s iShares Ethereum Trust ETF (ETHA) is a notable performer in this category, showing consistent inflows since its launch, with only two trading days recording no inflow and no outflows since early May.

This renewed interest in Ether ETFs comes amidst potentially favorable regulatory developments. The Securities and Exchange Commission’s Crypto Task Force has reportedly taken a more collaborative approach, clarifying that protocol-level staking might not be considered a securities transaction. This clarification could potentially pave the way for future Ether ETFs to include staking features, which could further enhance their appeal to investors.

Conclusion: Market Confidence Remains Strong

The sustained inflows into both **US Bitcoin ETFs** and recent positive movements in Ether ETFs underscore robust institutional and investor confidence in digital assets. Despite global uncertainties and geopolitical noise, capital continues to flow into these regulated investment products, contributing to market stability and highlighting the growing acceptance of cryptocurrencies as a legitimate asset class.