U.S. spot Bitcoin ETFs have seen a remarkable resurgence, with net weekly inflows surpassing $996 million, marking the highest level since mid-January. This uptick is not an isolated event; it represents the third consecutive week of positive inflows, totaling over $1.8 billion during this period. This shift comes after a weak first quarter characterized by significant outflows, indicating a cautious but notable return of institutional capital to the crypto market.

The inflows are not just limited to Bitcoin, as Ethereum ETFs also attracted $275.8 million, reflecting a broader recovery in the digital asset space. Notably, BlackRock’s IBIT fund dominated with $906 million in inflows, while newer entrants like Morgan Stanley’s MSBT fund gained traction with $71 million. This trend suggests a growing appetite for both established and emerging crypto products, although the market remains sensitive to geopolitical and macroeconomic factors.

For market professionals, the key takeaway is that while institutional interest in Bitcoin and other cryptocurrencies is returning, it is doing so selectively and cautiously. The future trajectory of these inflows may hinge on developments in U.S. monetary policy, particularly any potential rate cuts from the Federal Reserve, which could provide the necessary support for a sustained market rally.

Source: xtb.com