After a rough stretch, Bitcoin exchange-traded funds (ETFs) are showing signs of life again as investors pour cash back in. Most notably, the Grayscale Bitcoin Trust (GBTC), the largest Bitcoin ETF, recorded a net inflow of $63 million on Friday – its first daily inflow since converting into an ETF in January.
The positive turn for GBTC comes after 11 straight weeks of outflows totaling billions of dollars, as investors pulled money amid rising competition from newer, lower-fee Bitcoin ETFs. GBTC’s assets under management shrunk from over $26 billion to $18.1 billion, allowing BlackRock’s iShares Bitcoin Trust (IBIT) to narrow the gap.
But Friday marked a potential turning point, with GBTC and all other Bitcoin ETFs seeing net inflows for the first time. In total, $378 million flowed into Bitcoin ETFs that day, a stark contrast to their record $563 million in outflows the week prior.
The resurgence in Bitcoin ETF interest coincides with a modest pullback in Bitcoin’s price from its March all-time high above $73,000. Despite this, analysts at Bernstein reiterated their bullish long-term outlook, doubling down on their prediction that Bitcoin could reach $150,000 by the end of 2025. They cite the clearing out of excess leverage, strong ETF inflows, corporate buying, and healthy network fundamentals as reasons “risk-reward remains attractive.”
While it’s too early to declare Bitcoin ETFs are definitively back in favor, the unanimous inflows are an encouraging sign for a sector that had been stuck in a prolonged downtrend. If positive sentiment returns and drives more cash into these vehicles, it could provide renewed fuel for Bitcoin’s price to resume its climb.
