Bitcoin (BTC) Investor Interest Is Picking Up Again. Last Week Saw the Largest Inflows to Bitcoin ETFs Since December

Bitcoin exchange-traded funds (ETFs) attracted more than $3 billion in fresh inflows last week, the largest since the end of last year, as broader financial markets reacted to new developments around U.S. trade tariffs.

This surge in activity highlights a notable shift in sentiment, positioning Bitcoin as an asset that investors turn to during periods of economic uncertainty.

Earlier this month, President Trump’s administration announced a sweeping tariff policy, which quickly triggered a downturn across financial markets. By April 2, the S&P 500 suffered a historic single-day loss, wiping out $2.5 trillion in market value.

As investors braced for the impending disruptions to global supply chains and potential inflation spikes, they responded by pulling funds from both equities and cryptocurrencies.

However, the mood shifted after Trump authorized a 90-day pause on most tariffs, excluding those levied on goods from China. Following this announcement, the S&P 500 experienced its largest single-day gain since 2008, while Bitcoin rebounded sharply, notching a 9% gain on April 9.

Since that statement, the S&P 500 has edged up slightly by 1%, but Bitcoin has surged even further, recovering 14% in the nine days following Trump’s announcement.

This places Bitcoin in the forefront of capital inflows, highlighting a deeper shift in investor behavior.

Highlighting Bitcoin’s emerging role as a safe-haven asset, James Butterfill, head of research at CoinShares, noted that, "Bitcoin continues to outperform, which is interesting because equities are still performing poorly due to the tariffs and weak earnings season. But, crucially, they are largely uninfluenced by macroeconomic data, which makes them a logical addition to an 'anti-markets' portfolio."

"It’s also worth noting that while the S&P 500 is down 12% year-to-date and the U.S. stock market is poised for its worst quarter since 2011, Bitcoin is now up 55% year-to-date," he pointed out.

Indeed, the gap between Bitcoin’s performance and that of major stock indices is becoming more pronounced. Since Trump’s tariff pause, BTC’s 14% gain stands in stark contrast to the S&P 500’s 1% rise. This divergence is a clear indication that investors are rapidlypivoting their investment strategies.

This shift is also evident in the sustained capital flows into Bitcoin ETFs. Last week alone, these ETFs, which provide institutions and retail investors with a regulated and accessible vehicle to invest in BTC, attracted an astounding $3 billion.

This marks the largest weekly inflow since December, further highlighting the increasing maturity of Bitcoin as an investment asset class.

These inflows, coupled with Bitcoin’s price appreciation during a period when traditional assets are experiencing mixed movements, suggest a rising confidence in BTC’s long-term value proposition.