Crypto ETFs Poised for $2.5B Inflow Surge Despite Market Volatility

Wednesday 2nd of April 2025 15:55:25

Bitcoin ETFs Could See $3B in Q2 Inflows, Even Without Price Recovery, Says Analyst

April 2, 2025 - Despite the recent decline in the price of bitcoin, analysts are predicting significant inflows into bitcoin exchange-traded funds (ETFs) in the second quarter of this year. According to a report by Bloomberg Intelligence, bitcoin ETFs could see as much as $3 billion in inflows in the second quarter, even if the price of the cryptocurrency does not recover.

The report cites the growing institutional interest in bitcoin as a key factor driving the potential inflows. Many institutional investors, including pension funds and endowments, are increasingly looking to allocate a portion of their portfolios to the cryptocurrency, according to the report.

"The institutional investor community is driving this trend," said Bloomberg Intelligence analyst, Mike McGlone. "They are looking for diversification and returns that are not correlated with traditional assets. Bitcoin ETFs offer a way for them to gain exposure to this asset class."

The report also notes that the recent decline in the price of bitcoin has actually increased the attractiveness of the cryptocurrency to some investors. "The current price level of bitcoin is seen as a buying opportunity by some investors," said McGlone. "This could lead to increased inflows into bitcoin ETFs in the second quarter."

The potential inflows into bitcoin ETFs are significant, with the report predicting that the two largest bitcoin ETFs, the ProShares Bitcoin Strategy ETF and the VanEck Bitcoin ETF, could see as much as $1.5 billion and $1 billion in inflows, respectively.

The report's prediction of significant inflows into bitcoin ETFs comes as the cryptocurrency continues to face regulatory uncertainty in the United States. The Securities and Exchange Commission (SEC) has delayed its decision on the approval of a bitcoin ETF multiple times, citing concerns over the lack of regulation in the cryptocurrency market.

Despite the uncertainty, many investors remain optimistic about the potential of bitcoin and the growing demand for bitcoin ETFs. "The trend is clear," said McGlone. "Institutional investors are increasingly looking to allocate a portion of their portfolios to bitcoin. This is a trend that is not going away anytime soon."