Bitcoin ETF Flows Reach Record High Amid New All-Time High
U.S. Spot Bitcoin ETFs Attract Record $1.17B Inflows: Crypto exchange-traded funds set a new record, recording $1.17 billion in inflows Thursday, marking their second-wheeled inflow figure since their inception. This followed the asset’s new all-time high (ATH).
- Inflows were led by BlackRock’s IBIT ($448.5M), Fidelity’s FBTC ($324.3M), and ARK’s ARKB ($268.7M).
- Grayscale’s GBTC recorded net outflows of $40.2M, but overall net flows for U.S. spot Bitcoin ETFs turned sharply positive.
- This brings total net inflows across all U.S. BTC ETFs since their launch last January surpassing $50 billion.
New All-Time High Triggered $679M in Short Liquidations
Just days earlier, Friday morning saw Bitcoin reach a new all-time high of $118,667. This surge triggered $679.8 million in liquidated Bitcoin shorts amidst heightened buying pressure.
“The buying pressure is less about chasing momentum and more about strategic allocation,” explained Chris Colman, Head of Trading, APAC at Gemini.
Shift Towards Effected by Institutional Adoption
The latest surge highlights a significant institutional embrace. Flows increased substantially after the U.S. Securities and Exchange Commission (SEC) issued guidance on crypto ETF disclosure standards.
“This provides the regulatory clarity that risk-averse allocators demanded,” stated Charmaine Tam from Hex Trust.
Impact and Outlook
Demand is also driven by “float-adjusted scarcity,” suggests a phenomenon resulting from the combination of institutional ETF flows, corporate treasury adoption, and retail FOMO.
Futurists point towards further institutional interest: “Macro conditions are supporting the bid,” noted Colman, citing softer yields. Relatively large institutional strategies and near-term interest rate expectations also underpin current sentiment.
Crypto Short Shortage Widen Amid Global Context
The Bitcoin price surge also led to a redistribution of buying and selling pressure, with over $1.14 billion in net short positions liquidated across the broader crypto market in 24 hours.
Concurrently, President Donald Trump intensified calls for Federal Reserve rate cuts Thursday, posting on Truth Social: “Too Late” DEMEANS THE GREAT CREDIT OF THE USA… LOWER THE RATE!!!”
Data from an on-chain prediction platform shows divergence of opinion regarding Fed policy, though with 43.1% predicting a rate cut this month, contrasting with 35.7% expecting no move.
The administration also shifted focus, with OMB Director Russell Vought singling out Fed Chair Jerome Powell’s management, citing the central bank’s $2.5 billion headquarters project.
