BTC ETFs attract $532M in capital as Bitcoin surges past $80K during ceasefire-driven rally
Bitcoin exchange-traded funds see inflows exceeding $500 million as BTC breaks through $80,000 threshold for the first time since January, reflecting heightened institutional interest amid diminishing geopolitical uncertainties.
United States-based spot Bitcoin exchange-traded funds attracted $532.21 million in net capital flows on Monday as the flagship cryptocurrency climbed back above the $80,000 threshold, benefiting from enhanced risk appetite in the wake of a ceasefire deal struck between the United States and Iran.
The iShares Bitcoin Trust (IBIT) from BlackRock dominated the landscape with $335.49 million in single-day capital inflows, with Fidelity's Wise Origin Bitcoin Fund (FBTC) coming in second at $184.57 million, based on information from SoSoValue. The Bitcoin ETF from Morgan Stanley (MSBT) was the sole additional product to register positive movement on Monday, capturing $12.16 million in new investments. All other exchange-traded funds in the category reported zero fresh inflows.
The inflows observed on Monday marked the continuation of a three-session positive streak. During Friday's trading session, these investment vehicles attracted $629.73 million, whereas Thursday witnessed a more conservative $14.76 million in new capital. This positive run followed a three-day period of withdrawals during which the funds experienced outflows totaling $490.63 million, representing the most significant sustained period of redemptions seen in recent weeks.
The wave of fresh capital arrives as Bitcoin climbs above the $80,000 mark for the first time in a span exceeding three months. The dominant digital currency is presently changing hands at approximately $81,029, reflecting a 1.5% increase during the previous 24-hour period, based on information provided by CoinMarketCap.
Bitcoin breaks through $80,000 barrier on ceasefire-related momentum
In a recently published analysis, researchers from Bitunix indicated that the price increase is occurring as Bitcoin maintains "its post-ceasefire recovery in risk appetite." The analysts noted that BTC successfully recaptured the psychologically significant $80,000 level following a focused short-position liquidation event within the $79,500-$81,000 price range, with the $77,000-$78,000 area currently functioning as the main support zone for traders utilizing leverage on long positions.
Nevertheless, the broader context presents additional complexity, according to the Bitunix research team, who emphasized that macroeconomic conditions and geopolitical developments are playing an increasingly dominant role in determining cryptocurrency price movements. The United States military's initiation of "Operation Freedom," which involves deploying 15,000 military personnel to protect commercial shipping routes passing through the Strait of Hormuz, has created market uncertainty, with Iranian officials cautioning that such actions might breach the current ceasefire agreement.
Simultaneously, the upcoming release of this week's US Non-Farm Payrolls data and subsequent statements from Federal Reserve officials are anticipated to establish market direction for risk-oriented assets more broadly. Should inflation projections remain at elevated levels, the Federal Reserve may maintain interest rates at higher levels for an extended duration, creating pressure on cryptocurrency asset valuations. Conversely, if economic indicators come in weaker than expected, markets could witness capital flowing back into technology stocks and digital asset classes.
Overall, BTC is no longer being driven solely by internal crypto-market sentiment, but has entered a phase jointly priced by 'macro events + liquidity structure,'
Ether-focused ETFs experience renewed inflows
Exchange-traded funds focused on spot Ether also registered $61.29 million in net capital inflows during Monday's trading session. This performance followed an even more robust Friday session, which generated approximately $101.18 million in new investments, contributing to pushing total cumulative net inflows beyond the $12 billion threshold.
This recent positive trend emerges after late April experienced significant capital withdrawals, including $87.73 million in outflows on April 29 and $75.94 million on April 23, in addition to smaller negative sessions recorded on April 28 and April 30.