U.S. Bitcoin ETFs See Record Inflows Amid Trade Deal Relief

Investor demand for U.S. spot Bitcoin exchange-traded funds (ETFs) remains strong, as these investment products logged their third consecutive week of robust inflows. A total of $921 million was pumped into 12 spot Bitcoin ETFs between May 5-9, bringing the three-week tally to nearly $5.8 billion. This surge is largely attributed to easing global trade tensions, following a recent U.S.-U.K. trade deal and renewed discussions with China aimed at improving diplomatic ties.

The standout performer in this streak was BlackRock’s IBIT, which led the inflows by adding over $1 billion to its assets last week alone. With this momentum, IBIT has now enjoyed a 19-day inflow streak, accumulating more than $5 billion, marking the longest such streak for any spot Bitcoin ETF this year. Other funds, such as Fidelity’s FBTC and ARK 21Shares’ ARKB, also saw gains, albeit smaller, with the latter two bringing in $62.4 million and $45.6 million, respectively.

Despite the overall positive trend, some funds experienced outflows. Grayscale’s GBTC, Bitwise’s BITB, Franklin Templeton’s EZBC, and VanEck’s HODL recorded a combined outflow of $217.4 million, which partially offset the week’s gains. Meanwhile, several other BTC ETFs saw no significant flows during the period.

The influx into Bitcoin ETFs is part of a larger shift in market sentiment, linked to recent geopolitical developments. U.S. President Donald Trump’s announcement of a trade agreement with the U.K. to roll back tariffs on key goods, combined with renewed trade talks with China, has helped ease investor concerns and sparked a return of “risk-on” sentiment. This shift in investor mood has been reflected in Bitcoin’s price, which surged past the $100,000 mark again, reaching around $104,000, just 4.5% shy of its all-time high.

The market’s optimism is further supported by a rise in the Crypto Fear & Greed Index, which currently stands at 70, firmly in the “greed” zone. Analysts point to strong capital flows into Bitcoin ETFs, along with increasing institutional and government participation, as key drivers of the rally. In contrast, Ethereum ETFs had a bearish week, experiencing a net outflow of $38.15 million, underscoring the divergence in investor sentiment between the two largest cryptocurrencies.

The total net inflows into Bitcoin ETFs since their inception now stand at a new all-time high of $41.16 billion, underscoring the growing institutional interest in Bitcoin as a financial asset.