US Spot Bitcoin Exchange Trade Fund recorded the highest daily influx in three months driven by updated risk-on sentiment after President Donald Trump threatened to fire Federal Reserve Chairman Jerome Powell.
According to data from SoSovalue, the 12-spot Bitcoin ETF recorded a net inflow of $381.4 million on April 21, more than 250% higher than the previous day's inflow, marking the highest net inflow seen since January 30th.
Leading the fees was Ark 21Shares' ARKB, which attracted $116.13 million, and Fidelity's FBTC won for $87.61 million.
Bitwise's BITB and BlackRock's IBIT raised $45.08 million and $4162 million, while Vaneck's Hodl and Franklin Templeton's EZBC pulled $11.72 million and $10.1 million, respectively.
Grayscale's GBTC and BTC funds also contributed to this momentum, adding $36.6 million and $32.55 million.
Despite a strong recovery in the Bitcoin ETF, their Ethereum counterparts have not been doing well, continuing their bearish trend this week with a $2,542 million spill. This is the eighth consecutive week of losses of nearly $910 million in total.
This wave of influx followed last week's two-week outflow streak reversal, with a net addition of $15.85 million pointing to improved demand from institutional investors.
Surge criticised Trump and Powell again, posting to his true society that “ends can't come fast enough,” following Powell's remarks about delays in interest rate cuts. Trump also suggests a desire for more aggressive monetary easing, and reports suggesting his team is exploring legal options to remove Powell.
At the same time, US-China trade tensions and sustained rising inflation concerns have pushed gold prices to new highs, and Bitcoin appears to follow suit. Investors see both assets as safe shelters amid wider market instability.
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The US market reopened on April 21st after a Good Friday holiday, but feelings remained negative. The S&P 500 fell 2.4%, while Nasdaq and Dow fell 2.5% each. Meanwhile, the US dollar slipped into multi-year lows for major currencies, contributing to a shift in investors' preferences for alternative assets.
Despite the stocks slump, Cryptomarket saw Bitcoin (BTC) continue to move upwards on Monday over the weekend, rising above $88,500 on Tuesday, with its market capitalization recovering to above $1.75 trillion for the first time since late March.
Gold also surged above $3,450 per ounce during Asian trading hours on April 22nd.
Commenting on the situation, Komodo's Chief Technology Officer Kadan Stadelmann told Crypto.News that the influx reflects a wider shift in investor behavior as trust in the traditional financial system is eroded.
“Fiat currency lacks intrinsic value and with confidence that the US financial system is deteriorating, investors are turning to assets like Bitcoin,” says Stadelmann.
According to Stadelmann, Trump's aggressive interest rate cuts and threat push to remove Fed Chairman Jerome Powell has fostered fear of financial instability and a loss of trust in the dollar.
“All of these factors are suitable for Bitcoin. Bitcoin is considered one of the safe havens of the US dollar, along with gold, other precious metals and selected assets. Therefore, Bitcoin ETFs are seeing an inflow.
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