US Bitcoin ETFs attracted $381 million on 21 April, led by ARK 21Shares and Fidelity, amid Bitcoin’s recovery to $66,200 and post-halving market optimism.
Institutional investors poured $381 million into US Bitcoin ETFs on 21 April – the largest single-day inflow in three months – as Bitcoin stabilized near $66,200 despite broader market caution ahead of Federal Reserve policy decisions.
Record Inflows Signal Renewed Confidence
The $381 million net inflow marked the strongest daily demand since 30 January, according to Farside Investors data. ARK 21Shares Bitcoin ETF (ARKB) led with $116 million, followed by Fidelity’s FBTC at $105 million. Notably, Grayscale’s GBTC saw its first inflow ($63 million) since converting to an ETF in January, reversing a $17.4 billion outflow trend.
Bitcoin’s Price Recovery and Market Context
Bitcoin traded at $66,200 as of 25 April (CoinGecko), recovering from a 15% drop earlier in the week. The rebound coincided with easing Middle East tensions and the 20 April halving event, which reduced daily new Bitcoin supply to 450 coins. Crypto’s total market cap held at $2.4 trillion, outperforming traditional assets during thin Easter holiday trading.
Institutional Players Drive Momentum
BlackRock’s IBIT now holds 274,000 BTC ($16.7 billion AUM), becoming the fastest ETF to cross $15 billion in history (Bloomberg). ‘This isn’t retail FOMO – institutions are building strategic positions post-halving,’ said K33 Research analyst Vetle Lunde. The inflows occurred despite CME Group reporting record $470 million in short Bitcoin futures positions.
Post-Halving Dynamics and Market Sentiment
The 20 April halving cut mining rewards to 3.125 BTC per block, historically preceding bull markets. JPMorgan analysts note reduced sell pressure from miners, who now need Bitcoin above $50,000 to remain profitable. ‘ETFs are absorbing 5x the daily new supply,’ noted Bitfinex’s head of derivatives Jag Kooner.
Historical Context and Future Outlook
The current ETF surge echoes 2021’s institutional boom when MicroStrategy began accumulating Bitcoin, though today’s flows are more sustained. Unlike 2017’s retail-driven rally, this cycle features regulated vehicles attracting pension funds and asset managers. Analysts warn of volatility – the 2021 bull run saw 55% corrections – but many predict $100,000 Bitcoin by 2024’s end if ETF inflows maintain their $200 million/day average.
The ETF momentum contrasts with gold’s performance, where SPDR Gold Shares saw $2.4 billion outflows year-to-date. ‘Bitcoin is eating gold’s lunch as an inflation hedge,’ remarked Fidelity’s Jurrien Timmer. However, regulatory risks persist – the SEC continues delaying Ethereum ETF decisions, maintaining uncertainty for crypto’s second-largest asset.
