- Bitcoin ETFs hit $753M in inflows, signaling institutional demand resurgence.
- Record-breaking ETF inflows boost Bitcoin and Ethereum market confidence.
- Institutional investors push Bitcoin ETF inflows to new all-time highs.
U.S. spot Bitcoin exchange-traded funds (ETFs) have shattered records, witnessing an unprecedented $753.7 million in net inflows on Tuesday. This marks the largest surge since October 2025, signaling the strong return of institutional demand for digital assets. Leading the record-breaking inflows was Fidelity’s FBTC, which captured $351 million, followed by Bitwise’s BITB with $159 million, and BlackRock’s IBIT adding $126 million.
This surge in ETF inflows underscores a significant shift in market sentiment, as institutional investors return after a period of year-end caution and portfolio rebalancing. The dramatic increase in investor activity suggests a renewed optimism toward Bitcoin and other digital assets, with a clear appetite for riskier investments.
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Record Inflows Reflect Growing Confidence in Crypto Market
The surge in Bitcoin ETF inflows is not an isolated event. Ethereum ETFs also saw impressive positive flows, with $130 million entering the market across five funds. According to Vincent Liu, CIO of Kronos Research, the influx of capital is primarily driven by improving macroeconomic conditions, particularly the latest U.S. Consumer Price Index (CPI) data.
While inflation remains high, it has cooled significantly from its peak, sparking speculation that interest rate cuts may be on the horizon. This has pushed investors to reallocate capital towards assets with higher risk potential, such as Bitcoin.
Moreover, the progress of regulatory developments in the U.S. is playing a crucial role in restoring investor confidence. The U.S. Senate Banking Committee is preparing to discuss a new market structure bill that is expected to provide clearer regulatory guidelines for digital assets, which further fuels institutional interest in cryptocurrencies.
With Bitcoin trading at $94,610, up 3% in the last 24 hours, and Ethereum rising by 6.21% to $3,324, the crypto market is seeing strong price movements. Liu emphasizes that the current rally is largely driven by spot demand, rather than leverage, with ETFs absorbing more supply than is being issued by miners. This trend is creating a structural tailwind that is expected to support the market in the coming months.
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