Bitcoin ETFs Pull in $458M Despite Escalating Middle East Crisis
Institutional investors poured money into US-based spot Bitcoin exchange-traded funds on Monday, with inflows and trading activity strengthening even as geopolitical tensions in the Middle East intensified and global markets faced uncertainty.
The week kicked off with robust capital flows into US-based spot Bitcoin exchange-traded funds, continuing the momentum from the previous week's recovery despite intensifying conflicts across the Middle East region.
Exchange-traded funds (ETFs) tracking Bitcoin (BTC) witnessed inflows totaling $458.2 million on Monday, building upon the prior week's net inflows of $787.3 million, based on information provided by SoSoValue.
These recent capital additions brought the total cumulative net inflows to $55.3 billion. Daily trading volume surged to approximately $5.8 billion, marking the strongest level observed since the beginning of February.
The substantial inflows occurred alongside Bitcoin's approximately 3% price increase on Monday, based on data from CoinGecko. Market analysts attributed the gains to robust spot purchasing activity from investors in the United States, while certain industry watchers highlighted improving market sentiment notwithstanding the geopolitical uncertainties associated with the broadening Middle East conflict.
BlackRock leads inflows as altcoin funds add to gains
Exchange-traded funds tracking alternative cryptocurrencies experienced similar positive trends, albeit on a more modest scale. Funds focused on Ether (ETH) attracted approximately $39 million, whereas products tracking Solana (SOL) and XRP (XRP) registered inflows of around $17 million and $7 million, in that order.
Within the Bitcoin fund category, BlackRock's iShares Bitcoin Trust (IBIT) topped the list with $264 million in fresh capital, based on data from Farside.
Fidelity's Wise Origin Bitcoin Fund (FBTC) came in second with approximately $95 million, while Bitwise's Bitcoin ETF (BITB) contributed around $36 million.
BTC holds steady as traders absorb US-Iran tensions
Samson Mow, CEO of Jan3 and a prominent Bitcoin advocate, posted on X Monday to highlight that Bitcoin remained stable throughout the weekend notwithstanding heightened uncertainty following the US strike on Iran that occurred on Saturday.
There was downward pressure but we just bounced back up each time. It definitely feels different than from previous months.
Samson Mow
Analysts from CryptoQuant expressed a comparable viewpoint, indicating that Bitcoin's short-term holders "aren't blinking" yet in response to the Iran escalation.
The sell-side pressure from recent buyers is fading. Panic is being replaced by patience, or at least exhaustion.
CryptoQuant analysts
Jan van Eck, CEO of VanEck, contributed to the positive outlook, stating during a Monday interview with CNBC that Bitcoin is nearing a bottom. He indicated BTC is positioned to steadily gain momentum this year, observing that the four-year halving cycle has been a key driver of price over the past few months.
On Monday, JPMorgan purportedly stated that escalating Iran tensions represent a buying opportunity, not a signal to exit stocks. Analyst Mislav Matejka commented that the "current geopolitical escalation should ultimately be an opportunity to add, as fundamentals are positive," even as markets prepare for volatility.