Spot Bitcoin ETFs Attract $218M Inflows As Institutional Demand Returns

US Spot Bitcoin Exchange Traded Funds (ETFs) attracted a net inflow of $218 million, effectively reversing the sell-off experienced earlier in the week and signaling a renewed appetite for Bitcoin among institutional investors.

The resurgence comes as investors have largely shrugged off concerns surrounding potential reciprocal tariffs proposed by former US President Donald Trump. This suggests that the market has already priced in the potential impact of these tariffs, with institutional players viewing the recent dip as an opportune moment to accumulate Bitcoin at lower prices.

Spot Bitcoin ETF Gains Momentum

In the last week, eight of the publicly traded companies increased their Bitcoin reserves, adding a total of 26,303 BTC. This increase suggests growing confidence among institutional investors in Bitcoin’s long-term value. Major Bitcoin holders like Michael Saylor’s Strategy Corporation and Metaplanet in Japan have been buying more BTC.

However, the introduction of President Trump’s reciprocal tariffs has caused considerable volatility in the crypto market. Bitcoin’s price dropped from $88,000 to $81,000, even with strong inflows into spot Bitcoin ETFs.

Currently, bitcoin is priced at $83,630.65. The daily trading volume has increased by 85% to $54 billion, and the market capitalization is $1.65 trillion.

Spot Bitcoin ETFs have seen renewed inflows after a slow start to the week with net outflows. On Wednesday, April 2nd, total net inflows jumped to $218.1 million. According to data from Farside Investors, Fidelity’s FBTC and Ark Invest’s ARK led the way with inflows of $119 million and $130 million, respectively.

However, BlackRock’s iShares Bitcoin Trust (IBIT) saw over $115.9 million in outflows. The market’s reaction to recent events, including the Trump tariffs, has been varied. The tariffs seem to have become a “buy the news” event.

Analysts’ Opinion on Bitcoin’s Trajectory  

Arthur Hayes, co-founder of BitMex, commented that the market does not seem to favor a “Liberation Day” scenario. He suggested that the market may be out of danger if Bitcoin can maintain a price above $76,500 between now and the US tax day on April 15th. He cautioned traders to avoid being “chopped up” during this period of uncertainty.

Crypto analyst Ali Martinez has identified a crucial price range for Bitcoin, noting that it is currently trading between $86,900 and $84,800. Martinez suggests that the direction of the initial breakout from this range on the hourly chart could determine Bitcoin’s subsequent major price movement.

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