The cryptocurrency market is experiencing a strong bullish recovery, overcoming the recent disruptions caused by the Trump tariff shock. This resurgence is not only reflected in digital asset prices but also in the performance of crypto Exchange-Traded Funds (ETFs).
Bitcoin ETFs have seen a significant influx of $591.2 million, with BlackRock’s IBIT leading the pack with a staggering $970.9 million in inflows. Despite facing outflows, Grayscale’s GBTC has outperformed its competitors in terms of revenue, generating an implied $268 million compared to the combined $211 million from other spot Bitcoin ETFs. This trend highlights the continued dominance of GBTC in the market.
On the Ethereum front, ETH ETFs are also gaining momentum, with $64.1 million in net inflows. BlackRock’s ETHA emerged as the top performer with $67.5 million, while Bitwise’s ETHW experienced outflows of $3.4 million.
The surge in ETF inflows for both Bitcoin and Ethereum can be attributed to a combination of factors. Hedge funds are actively seeking arbitrage opportunities in the market, while long-term crypto holders are reinforcing their conviction in digital assets. Institutional players like Millennium Management and Point72 are injecting capital into crypto ETFs, boosting liquidity and signaling a growing interest in digital assets within traditional finance circles.
Despite the positive momentum in the market, technical indicators suggest a more nuanced outlook. Bitcoin is trading at $94,985.44 with a 0.5% increase in the last 24 hours, while Ethereum has seen a stronger 1.22% gain, reaching $1,830.28. However, Bitcoin’s Relative Strength Index (RSI) indicates a presence of bullish momentum but not yet dominant, while Ethereum’s RSI suggests that bearish pressure still overshadows buying strength.
In conclusion, while institutional inflows and long-term holder confidence are providing a foundation of support for the market, the lack of a clear directional bias leaves room for potential volatility in the days ahead. As the crypto market continues to evolve, ETFs are becoming an integral part of institutional portfolios, further solidifying the presence of digital assets in the traditional financial landscape.