Bitcoin ETFs Attract Record Weekly Inflows Amid US-Iran Tensions

Spot bitcoin exchange-traded funds (ETFs) have reported significant weekly net inflows, with $996.4 million flowing into the funds last week. This represents the largest weekly sum since the week ended January 16, and marks the third consecutive week of positive flows. Over the past three weeks, spot bitcoin ETFs have drawn in more than $1.8 billion worth of funds.

BlackRock's IBIT, the largest bitcoin fund by net assets, led the way with $906 million in inflows during the period. Morgan Stanley's MSBT, which launched on April 8, also saw significant activity, logging a weekly net inflow of $71 million.

Spot Ethereum ETFs also posted their highest weekly net inflows since January 16, worth $275.8 million. The surge in demand for spot bitcoin and Ethereum ETFs has been attributed to institutional investors increasing their long positions on the funds amid a perceived de-escalation in tensions between the US and Iran.

BTSE's COO, Jeff Mei, stated that 'institutional investors believe a permanent de-escalation in tensions is imminent, and are increasing their long positions on bitcoin ETFs as a result.' However, Mei also noted that a sustained upward momentum requires additional rate cuts from the Federal Reserve.