Bitcoin ETFs have their best week since March
United States spot Bitcoin ETFs have made a spectacular comeback, attracting over $3 billion in inflows this week. It is their first back-to-back winning week in five weeks. The 11 spot Bitcoin ETFs alone received $380 million in inflows on April 25, according to Farside data. It was the previous time momentum was this high during the week ended March 21, showing a strong bounce back of investor sentiment in investment products tied to Bitcoin.
Analyst: Bitcoin ETFs ‘Shift from 1st Gear to 5th Gear
ETF analyst Eric Balchunas attributed the swift turnaround, describing it as a Bitcoin “bender,” in an April 24 tweet. Balchunas cited the rapid surge in inflows, noting how rapidly sentiment can turn from conservative to bold. He speculated that the “basis trade” could have been partially responsible, wherein investors arbitrage the price difference between spot Bitcoin and futures contracts.
April Turns Positive Despite Earlier Volatility
April has been a volatile month for Bitcoin ETFs, with nine of the first 18 trading days seeing outflows. But the recent buying rush has totally transformed the scenario. Due to this strong week, April’s total net inflows have become positive, standing at around $2.26 billion. This turn of events illustrates how spot Bitcoin ETFs can quickly bounce back even in the face of greater macroeconomic uncertainty.
Institutional Optimism Boosts Bitcoin Sentiment
Institutional enthusiasm continues to grow. MicroStrategy founder Michael Saylor, speaking at the Bitwise Invest Bitcoin Corporations Investor Day, boldly predicted that BlackRock’s iShares Bitcoin ETF could become the largest ETF globally within the next decade. Meanwhile, BlackRock’s IBIT was recently honored with two major accolades — “Best New ETF” and “Crypto ETP of the Year” — at the etf.com annual awards ceremony, further boosting its credibility among investors.
Bitcoin Price Outlook Is Bullish
Bitcoin’s price remains steady, in the $94,600 zone at this time of writing. Institutions are getting increasingly bullish about Bitcoin in the long term. ARK Invest, for instance, recently published revised Bitcoin price targets, elevating its “bull case” to $2.4 million by 2030. Even its “bear” and “base” case projections have surged significantly, underlining a widespread view that Bitcoin is solidifying its status as “digital gold” in a rapidly fluidizing financial world.
