Bitcoin ETFs saw an astonishing $919 million in inflows on Wednesday, with BlackRock’s IBIT attracting 70% of that total. Professional traders are capitalizing on basis trades as Bitcoin prices rise, making it a moment of significant interest for analysts and investors alike. The market here is seemingly separating from traditional equities amid changing investor sentiments, raising questions about future trends.
Bitcoin exchange-traded funds are experiencing a remarkable surge, having registered $919 million in net inflows just this Wednesday alone. This impressive figure corresponds to the second consecutive day in which the ETFs collected more than $900 million in new investments, as detailed by JPMorgan. Leading the charge is BlackRock’s IBIT, which drew in a staggering $645 million, or roughly 70% of the combined inflows. Following closely behind are ARK 21Shares’ ARKB and Fidelity’s FBTC, logging $130 million and $125 million respectively.
This rampant purchasing activity hasn’t gone unnoticed; market analysts are taken aback by the sheer speed at which these funds are accumulating capital. Eric Balchunas, a Bloomberg ETF analyst, commented on X, saying, “ETFs are on a bitcoin bender, having consumed nearly 25,000 BTC in merely three days.” This fast-paced accumulation also coincides with a notable price increase in Bitcoin itself, which is up around 9% to $93,000 over the past week.
What’s particularly interesting here is the potential shift in Bitcoin’s market dynamics. As traditional tech stocks faced downward pressure—largely influenced by Donald Trump’s unpredictable tariff policies—Bitcoin’s trajectory has remained upward. This might imply that ETF investors are beginning to view Bitcoin less as a speculative asset and more as a safe haven.
However, not all the influx of funds is likely to come from standard retail investors placing long-term bets. Analysts suggest some of this buying frenzy is attributed to professional traders engaging in what’s known as a basis trade. Balchunas noted that the recent volatility in Bitcoin prices tends to create gaps between ETF prices and Bitcoin futures contracts, allowing nimble traders to capitalise on these disparities while managing risk. “That’s the fast money that tends to come in and out with price,” he explained.
With such significant inflows, many are speculating on the sustainability of this bullish momentum. Earlier in the year, specifically late February, Bitcoin experienced heavy outflows that mirrored this week’s inflow trends. Ecoinometrics, a market analytics firm, hinted that the current influx could signal a resurgence in market confidence yet cautioned that a one-day spike alone wouldn’t constitute a solid regime shift. More sustained growth will be necessary for that.
Who knows where this Bitcoin bender will take us next? Stay tuned for developments as the market continues to evolve.
Pedro Solimano is a markets correspondent based in Buenos Aires. Reach out to him at [email protected] with tips or insights.
