Bitcoin ETF Flows Turn Positive on Defensive Rotation
Bitcoin ETF flows turned positive last week for the first time since October, attracting over $60 million in net inflows. Flagship products such as BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin ETF (FBTC) led the gains, while smaller issuers also recorded inflows. Despite this upbeat development, analysts caution that the uptick reflects a defensive rotation from cash and short-term bonds into crypto exposure amid rising U.S. Treasury yields and geopolitical risks. They warn that the current Bitcoin ETF inflows may not signal a lasting bullish trend but rather serve as a risk management tool. Traders should monitor macro indicators—such as interest rate paths and dollar strength—and ETF flow data closely to assess whether momentum will sustain. Any reversal in bond yields or a shift in market sentiment could quickly alter the outlook for Bitcoin.
Neutral
While the inflows into Bitcoin ETFs signal renewed interest, the defensive nature of the rotation—shifting from cash and bonds amid rising yields and geopolitical tensions—suggests limited upside. Historically, similar moves in 2022 saw quick price spikes followed by sell-offs when macro headwinds persisted. In the short term, ETFs may support Bitcoin prices by providing a liquidity cushion, but sustained gains will likely depend on an easing rate environment and stronger risk appetite. Traders should watch yield curves, Fed policy cues and ETF flow trends; a reversal in any of these factors could quickly turn the market bearish again.