“`html

Spot Bitcoin exchange-traded funds (ETFs) in the United States have witnessed their highest daily inflows in three months, driven by a renewed risk-on sentiment following political developments. On April 21, President Donald Trump’s comments about potentially firing Federal Reserve Chair Jerome Powell spurred a wave of interest in alternative investments like Bitcoin.

Bitcoin ETFs See Record Inflows

According to market data, 12 spot Bitcoin ETFs collectively recorded $381.4 million in net inflows on April 21. This represents an over 250% increase compared to the prior day and marks the most significant single-day inflow since January 30. Institutional interest appears to be on the rise, as investors seek refuge in alternative assets amid market uncertainty.

Leading the inflows was ARK 21Shares’ ARKB, which attracted $116.13 million. Fidelity’s FBTC followed closely, bringing in $87.61 million. Other notable contributors included:

  • Bitwise’s BITB: $45.08 million
  • BlackRock’s IBIT: $41.62 million
  • VanEck’s HODL: $11.72 million
  • Franklin Templeton’s EZBC: $10.1 million
  • Grayscale’s GBTC and BTC funds: $36.6 million and $32.55 million, respectively

Ethereum ETFs Struggle Amid Bitcoin’s Growth

While Bitcoin ETFs have experienced a strong recovery, Ethereum ETFs continue to face challenges. Over the past week, these funds have reported $25.42 million in outflows, extending a bearish trend that has persisted for eight consecutive weeks. Since the beginning of this downturn, Ethereum ETFs have lost nearly $910 million in total outflows.

This divergence underscores the differing investor sentiment between Bitcoin and Ethereum, with Bitcoin emerging as a preferred hedge against macroeconomic instability.

Institutional Demand Returns

The recent surge in Bitcoin ETF inflows marks a reversal from the two-week outflow streak seen earlier this month. Last week alone, net additions totaled $15.85 million, signaling improving demand from institutional investors. This renewed interest coincides with broader market dynamics, such as geopolitical tensions and concerns over persistent inflation.

Political and Economic Factors Driving Demand

The latest inflows came shortly after President Trump criticized Federal Reserve Chair Jerome Powell, calling for his removal on Truth Social. Trump’s push for more aggressive monetary easing has raised concerns about monetary stability, prompting investors to seek alternatives like Bitcoin and gold.

Adding to the uncertainty, rising U.S.-China trade tensions and inflationary pressures have further fueled demand for safe-haven assets. Bitcoin, often referred to as “digital gold,” has mirrored the upward momentum seen in traditional commodities like gold.

Broader Market Context

The U.S. equities market faced a downturn on April 21, as the S&P 500 dropped 2.4%, while the Nasdaq and Dow each declined by 2.5%. Simultaneously, the U.S. dollar hit multi-year lows against major currencies, further incentivizing investors to diversify into alternative assets.

Despite the bearish sentiment in equities, crypto markets remained resilient. Bitcoin prices climbed steadily, surpassing $88,500 on April 22, while its market capitalization rebounded above $1.75 trillion for the first time since late March. Gold also continued its rally, reaching $3,450 per ounce during Asian trading hours.

Expert Insights

“Fiat currencies lack intrinsic value, and with confidence in the U.S. financial system deteriorating, investors are turning to assets like Bitcoin,” said Kadan Stadelmann, Chief Technology Officer of Komodo.

Stadelmann highlighted that Trump’s calls for aggressive rate cuts and threats to remove Powell have further eroded trust in the dollar. He added, “All of these factors are good for Bitcoin, which many view as a safe haven alongside gold and other precious metals. As a result, Bitcoin ETFs are seeing significant inflows.”

Bitcoin’s Resilience Amid Market Instability

While traditional markets are grappling with uncertainty, Bitcoin has demonstrated remarkable resilience. Its continued price growth and increasing adoption by institutional investors signal a broader shift in financial trends. As confidence in traditional financial systems wanes, alternative assets like Bitcoin are becoming a key component of diversified investment strategies.

“`

Post Views: 0