How 1 Billion Just Flooded Into Bitcoin ETFs in a Single Day

The US exchange-traded funds market saw one of the largest capital inflows ever in one day on Tuesday. Spot Bitcoin ETFs hauled in nearly $1 billion and a combined $108.6 billion with ETH ETF, the largest amount since the beginning of Donald Trump’s pro-crypto presidency.

According to data from SoSoValue, the spot Bitcoin ETFs alone garnered a whopping $936.43 million daily total net inflow on April 22, bringing the week’s total inflow to $1.32 billion. ARK 21Shares Bitcoin ETF led the pack, with a net inflow of $267 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT), with $193.5 million.

Good Sign to See Flow Depth

Fidelity’s Wise Origin Bitcoin Fund (FBTC) came in close with inflows totaling $253.82 million, bringing its cumulative inflows to $11.62 billion and total net assets to $18.16 billion. This secures its place as the second-best performer across both metrics for spot Bitcoin ETFs.

Commenting on the development, Bloomberg senior ETF analyst Eric Balchunas observed that the levels were a “Good sign to see flow depth vs. say $IBIT doing 90% of the lifting.” The outcome surprised friends and foes, as Tuesday’s inflows followed weeks of volatility.

While spot Bitcoin ETFs could have seen over $27.5 billion in outflows between January 20 and April 8, the latest data signals a possible turning point and could be Bitcoin’s signal to Wall Street. According to Dan Greer, CEO of the DeFi App platform:

“This is the strongest signal yet that crypto is becoming part of the core financial playbook […] institutions aren’t just dipping their toes in anymore, they’re leaning in. As traditional markets wobble under macro pressure, Bitcoin is starting to look less like a speculative asset and more like a strategic allocation.”

Bitcoin’s Signal to Wall Street

Since becoming President of the United States, Donald Trump has made the crypto space one of his key focus areas in a bid to assert the country’s dominance in the digital asset area. His administration pledged to prioritize and promote the crypto industry, and steps have already been taken to overhaul the regulatory landscape, including creating the country’s first strategic Bitcoin reserve.

Since President Donald Trump was inaugurated into office last January, spot Bitcoin ETFs have surged in popularity. According to most analysts, a more crypto-friendly US Securities and Exchange Commission could be another reason we’re seeing the latest Bitcoin signal to Wall Street: crypto could be ready to join the mainstream financial world. At the time of writing, Bitcoin was trading at around $92,382.40.

Conclusion

As cryptocurrency prices continue to surge, with Bitcoin briefly surging above $94,000 during trading on Wednesday, the spot Bitcoin ETFs have also excelled with amazing inflows. Some analysts believe the crypto rally and Bitcoin’s signal to Wall Street reacted to President Donald Trump’s statement on Tuesday, saying he wouldn’t “play hardball” with China and that he had walked back from expected tariff duties.

Frequently Asked Questions

How does a Bitcoin ETF work?

Investment companies create a subsidiary to act as a commodity pool, which trades bitcoin futures contracts typically to mimic the spot price of bitcoin. However, investment is subject to costs like “roll premiums” and management fees.

What is the main advantage of investing in Bitcoin ETFs?

Investors in ETFs gain direct exposure to Bitcoin without signing up for a crypto exchange or creating a wallet.

What are the pros and cons of ETFs?

ETFs’ advantages include lower costs, high liquidity, transparency, tax efficiency, and diversity of assets. On the negative side, they carry payable commissions associated with trading.

Appendix: Glossary to Key Terms

Wall Street: A physical street in New York City’s financial district and a broader symbolic representation of the US financial system and its institutions.

ETFs: An exchange-traded fund (ETF) is a basket of securities that tracks or seeks to outperform an underlying asset.

Reference

SoSoValue

 

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