US-based Bitcoin ETFs are experiencing a surge in demand

US-based Bitcoin ETFs saw huge demand this week, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the way.

The fund has clocked up 15 days of net inflows, picking up 5,613 BTC, or $530 million, on Monday alone. This recent activity has seen the IBIT’s total year-to-date inflows pass $44 billion, making it the eighth-highest ETF for year-to-date flows and year-to-date outflows with $6.4 billion.

Institutional appetite for Bitcoin continues to grow. BlackRock increased its stake in the iShares Bitcoin ETF by 124% during the first quarter of this year. This move brought the asset manager’s total investment in the ETF to $314 million.

Monday’s overall Bitcoin ETF inflows came in at $425 million. While BlackRock’s IBIT saw $530 million in inflows, other funds including Fidelity’s FBTC, Bitwise’s BITB, and Grayscale’s GBTC experienced net outflows, according to data from Farside Investors.

Bloomberg’s senior ETF strategist Eric Balchunas noted that IBIT has been “hoovering up BTC like a madman ever since the decoupling.” The ETF has climbed from outside the top 50 to eighth place in year-to-date flows.

Deja vu in the weekly flows w/ $VOO and $IBIT in the top spots, just like last year when 'beta with a side of bitcoin' was the big theme. $IBIT now 8th in YTD flows (was out of Top 50 at one point) with +$6.4b. Been hoovering up btc like a madman ever since the decoupling. pic.twitter.com/Jh1sJdmqHa

— Eric Balchunas (@EricBalchunas) May 5, 2025

Record-Breaking Accumulation

The pace of institutional buying is staggering. Over the last week, US-based Bitcoin ETFs purchased nearly six times as many Bitcoin as were produced by miners. While miners generated only 3,150 BTC during this period (roughly 450 coins per day), ETFs bought a massive 18,644 Bitcoin.

This accumulation represents approximately $1.8 billion in inflows over five trading days, with only one day of net outflows since April 16. The inflows have closely tracked the market’s recovery.

The Bitcoin ETF market has grown significantly despite facing distribution hurdles. ETF Store president Nate Geraci remarked that spot Bitcoin ETFs have “surged into a nearly $110 billion category” despite many wealth management platforms still restricting or prohibiting financial advisers from recommending or providing access to these products.

“That's why I've said spot Bitcoin ETFs are operating with one hand tied behind their backs. Imagine what might happen as these restrictions are lifted,” Geraci stated.

Market Outlook

Bitcoin’s price has remained stable around $94,500 over the past week. After gaining 4% to reach a six-week high of $97,700 on May 2, the asset has since pulled back to the $94,000 level.

Analysts are monitoring several metrics to anticipate potential price movements. The Bitcoin MVRV (Market Value to Realized Value) ratio recently touched its long-term mean at 1.74, which some analysts view as a sign that market froth has been flushed out. Popular crypto analyst Kyledopps described this as “a classic sign of flushed-out unrealized gains” and suggested that holding this level could lead to “a clean reset and a setup for recovery.”

The CoinGape Bitcoin price prediction indicator suggests the asset will remain around $94,600 over the next month. However, continued ETF inflows could provide further momentum for a potential rally toward $100,000.

Meanwhile, regulatory decisions continue to shape the crypto ETF landscape. The SEC is due to make a decision on the Canary Capital spot Litecoin ETF by May 5. Bloomberg ETF analyst James Seyffart believes a delay is more likely than approval, though he noted that “if any asset has a chance of early approval, it’s Litecoin.”

With more than 70 US crypto ETFs awaiting SEC decisions this year, the institutional landscape for digital assets continues to evolve rapidly. BlackRock’s Bitcoin ETF remains at the forefront of this movement, consistently attracting new capital and setting the stage for potential further price recovery.