BTC ETF inflows hit US$936M: What’s driving the demand?

On April 22, Bitcoin Spot ETFs recorded US$936 million in new capital, their largest single-day inflow since January 17. It marked the third consecutive day of strong institutional buying, led by heavyweights like BlackRock, Fidelity, Ark Invest, and Grayscale.

As I shared in The Block’s coverage, this surge marks a structural shift in market sentiment. In just three days, spot bitcoin ETFs have attracted over US$1.4 billion in net inflows, a sign that institutional conviction in Bitcoin is rising amid persistent macroeconomic dislocations, inflation risk, and geopolitical uncertainty.

Macro tailwinds favouring Bitcoin

A weakening U.S. dollar, persistent inflation concerns, and expectations of renewed Federal Reserve quantitative easing (QE) are driving Bitcoin’s appeal as a hedge against fiat currency devaluation. Political tensions between U.S. President Donald Trump and Fed Chair Jerome Powell have further fuelled volatility in traditional markets, with the S&P 500 dropping 2.4% and the U.S. Dollar Index hitting a three-year low. This has prompted capital rotation into safe-haven assets like gold and Bitcoin.

The day prior, Bitcoin ETFs added another US$381 million, part of the US$1.4 billion surge over just three days. That kind of back-to-back activity isn’t random. It signals that large allocators are positioning with intent. ARKB (Ark and 21Shares) and FBTC (Fidelity) led the way with US$267.1M and US$253.8M, respectively.

Technical breakout adds fuel

Bitcoin’s recent breakout above its 200-day Exponential Moving Average near $85,000, a key bullish signal, has further fuelled institutional momentum. For quant-driven funds and large allocators, this level often triggers risk-on positioning. Additionally, MicroStrategy’s US$555.8 million purchase of 6,556 BTC on April 21 underscores the scale of institutional commitment.

What does this mean for Bitcoin and crypto?

Rising global liquidity is also supporting a broader crypto bull market, with Bitcoin leading due to its ETF integration and scarcity dynamics.

The US$936 million in ETF inflows signals more than a short-term reaction. It suggests a structural shift. Institutional capital is rotating back into crypto, driven by macroeconomic dislocations, favourable supply dynamics, and Bitcoin’s growing acceptance as a strategic asset class.

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