Bitcoin ETFs continue to smash expectations: the funds have now racked up flows of over $41 billion since their January 2024 launch, hitting a new all-time peak for inflows.
Data from Farside Investors shows that cumulative inflows stand at over $41.1 billion following Monday's trading action.
It's quite the reversal of fortunes for the Bitcoin funds, which until recently were rapidly losing funds as investors pulled away amid an unexpected and at-times erratic global trade war.
Lifetime net flows is #1 most imp metric to watch IMO, very hard to grow, pure truth, no bs. Impressive they were able to make it to new high water mark so soon after the world was supposed to end. Byproduct of barely anyone leaving, left only a tiny hole to dig out of. https://t.co/1pHHzFc5Rr
President Trump's bellicose trade rhetoric led investors to pull out billions from the funds during February—the month in which they had their worst day ever—and March, and into the start of April, as they avoided risk-on assets.
But investors have a taste for risk again now the new commander-in-chief has calmed his tariff war. And they're looking to Bitcoin.
The reason for the huge cumulative flows comes down to investors previously locked out from the crypto investing space now finally being able to speculate on the leading coin.
"ETFs have become one of the primary avenues through which investors in general are getting exposure to Bitcoin," Sumit Roy, senior ETF analyst for ETF.com, told Decrypt.
Bitcoin dropped to $75,000 at one point in April, plunging from a new all-time high peak above $108,000 in January, on inauguration day. Roy added that the crypto market pullback could have spooked investors, causing them to sell or at least hold off on adding to their Bitcoin ETFs.
But following a string of rough weeks for flows, the reverse happened. "We've seen the opposite: investors took advantage of the pullback to add," he said.
Bloomberg ETF analyst Eric Balchunas wrote on X that net flows is the top metric to pay attention to when observing a fund's success. "Impressive [the Bitcoin ETFs] were able to make it to a new high water mark so soon after the world was supposed to end," he noted, referring to the continued flows into the products following Trump's trade war.
ETFs are popular investment vehicles that trade on stock exchanges, allowing investors to buy and sell shares that track the price of anything from the S&P 500 and gold to Bitcoin and real estate firms.
The cryptocurrency industry notched two major victories last year when several fund issuers secured long-awaited approvals to offer spot Bitcoin exchange-traded funds and their Ethereum-based counterparts in the U.S. But that doesn't mean issuers are ready to rest on their laurels just yet.
In recent months, fund managers have proposed new investment offerings directly tracking the prices of a variety of cryptocurrencies, from Dogecoin to XRP, Solana, and even Donald Trump’s meme coin.
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After a decade of saying no to such products, the Securities and Exchange Commission last year approved the Bitcoin products, allowing 10 such spot ETFs to start trading on American stock exchanges. Ethereum funds followed last summer, and now issuers are angling to offer a much wider array of altcoin funds, pending SEC approval.
Bitcoin was recently trading for $104,260, CoinGecko data shows, after jumping by more than 25% over a 30-day period. The asset is just 4% off its January all-time high price.
Texas has officially opened its state-managed fund for Bitcoin, with Governor Greg Abbott signing Senate Bill 21 into law Friday, establishing the state's Strategic Bitcoin Reserve and joining two other states in the process.
The reserve enhances the state's financial resilience by serving as a "hedge against inflation and economic volatility," with its comptroller authorized to buy, sell, hold, or manage any investments in the reserve, its bill reads.
Governor Abbott's signature comes a month a...
Bitcoin regained a footing late Sunday to trade above $101,000, recovering from earlier weekend losses as investors responded to U.S. and Israeli airstrikes on Iranian nuclear sites.
The gains came alongside modest moves in gold and a muted reaction across oil and equity futures, signaling traders expect a contained conflict rather than a sustained geopolitical shock.
The U.S. operation, carried out in coordination with Israel, targeted Fordow, Natanz, and Isfahan using more than 125 aircraft a...
Crypto prices continued to crater Sunday morning, with Bitcoin dropping below $100,000 mark, Ethereum plunging 10% on the day, and assets like Solana, XRP, and Dogecoin falling to multi-month lows.
The downward shifts came after the United States entered the conflict between Israel and Iran, with President Donald Trump announcing late Saturday that U.S. forces bombed three Iranian nuclear facilities in an attack dubbed Operation Midnight Hammer.
The move threatens to further inflame tensions in...