Bitcoin ETFs attract $854M in five days

Bitcoin exchange-traded funds (ETFs) attracted $854 million in net inflows over the past five days, the longest streak of positive flows since late March, as traders scaled back bets on further U.S. interest rate hikes.

The surge follows a shift in Federal Reserve policy expectations, with softer inflation data and signals from policymakers reducing the likelihood of additional rate increases. Bitcoin, often seen as a hedge against inflation and a speculative asset, tends to benefit from looser monetary conditions. The recent flows reverse a period of outflows that began in April, when stronger-than-expected economic data reignited rate-hike fears.

BlackRock’s IBIT and Fidelity’s FBTC led the inflows, accounting for the bulk of the new money, while Grayscale’s GBTC saw modest outflows. Analysts are divided on whether this marks a sustained return of institutional demand or a short-term rebound. Some point to the shrinking daily totals—from $340 million on the first day to $40 million by the fifth—as a sign of caution.

If rate-cut expectations solidify, Bitcoin ETFs could see continued demand, but a resurgence in inflation or hawkish Fed rhetoric could quickly reverse the trend. The next U.S. jobs report and consumer price data will be critical in shaping investor sentiment.