U.S. spot Bitcoin exchange-traded funds recorded $996.4 million in weekly inflows, the highest since mid-January, according to SoSoValue. The surge extends a three-week streak and signals renewed institutional allocation into crypto-linked products.
Total inflows over the past three weeks have exceeded $1.8 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) leading last week at $906 million. Morgan Stanley’s newly launched MSBT added $71 million in its first full trading week after its April 8 debut. Spot Ethereum ETFs also posted $275.8 million in inflows, marking their strongest week since January.
Are Macro Tensions Driving Bitcoin ETF Allocations Higher?
The inflow momentum coincides with shifting geopolitical expectations in the Middle East. Institutional investors are increasing exposure as they anticipate a potential de-escalation between the United States and Iran, according to market participants. But, uncertainty remains as ceasefire deadlines approach and conflicting signals emerge from both governments.
Mariamne Everett,Heba Habib
Crypto price action has remained muted despite strong ETF demand. Bitcoin traded near $75,006, down 0.25% over 24 hours, while Ether declined 0.6% to $2,301, according to price data. Still, ETF inflows contrast with earlier periods when macro tightening and rate expectations weighed heavily on institutional positioning.
“Institutional investors believe a permanent de-escalation in tensions between the U.S. and Iran is imminent, and are increasing their long positions on bitcoin ETFs as a result,” said Jeff Mei, chief operating officer at BTSE.
He added that sustained inflows will likely depend on further interest rate cuts from the Federal Reserve.
The next catalyst will be whether macro conditions align with investor positioning, particularly as geopolitical negotiations and central bank policy decisions shape capital flows into crypto ETFs.
