U.S. spot bitcoin exchange-traded funds (ETFs) drew $996.4 million in net inflows last week, the highest weekly total since mid-January, according to SoSoValue.
It was the third straight week of positive flows, lifting cumulative net inflows over that period to more than $1.8 billion and pushing total assets under management in U.S. spot bitcoin ETFs above $96.5 billion.
BlackRock leads; Morgan Stanley ramps up
BlackRock’s bitcoin ETF dominated activity, pulling in $906 million during the week and reinforcing its lead as the largest bitcoin ETF by net assets.
Morgan Stanley’s spot bitcoin ETF, launched on April 8, attracted $71 million in its first full week of trading, underscoring growing appetite for newly listed, regulated crypto products.
The expansion is increasingly institutional in nature. More than 2,000 U.S. advisory firms now allocate to spot bitcoin ETFs, up sharply from fewer than 200 before 2024, signaling a broadening acceptance of these products in traditional portfolios.
Ethereum ETFs see parallel strength
U.S. spot Ethereum ETFs also recorded a strong week, pulling in $275.8 million in net inflows. That matched their best weekly performance since January 16.
Despite the inflows, underlying token prices eased slightly after the
- bitcoin slipped 0.25% to $75,006
- ether fell 0.6% to $2,301
Analysts noted that flows into ETFs and short-term price moves in the underlying assets can diverge, particularly when macro risks dominate sentiment.
Geopolitical tension frames market backdrop
The inflow surge unfolded against rising geopolitical uncertainty. A two-week ceasefire between the United States and Iran is set to expire Wednesday, with fresh negotiations expected in Islamabad aimed at de-escalating tensions.
Reports indicated U.S. forces seized an Iranian-flagged cargo ship in the Strait of Hormuz. Iranian officials responded that peace talks would not move forward unless Washington lifts what they describe as a blockade of the key waterway.
President Donald Trump said U.S. negotiators are preparing for discussions, but outcomes remain unclear. Any breakdown in talks risks renewed instability in the region.
Energy risk and inflation complicate Fed outlook
The Strait of Hormuz, a critical chokepoint through which about 20% of the world’s crude oil flows, remains central to market risk calculations. A sustained disruption there would likely push energy prices higher, weighing on global growth and intensifying inflation pressures.
The latest U.S. Consumer Price Index showed a 3.3% rise over the 12 months ending in March, with a 12.5% jump in the energy index a key driver. These figures are feeding directly into the Federal Reserve’s policy debate.
Fed officials left interest rates unchanged at their last meeting, citing the need to gauge the impact of elevated energy costs and geopolitical risks. Governor Christopher Waller has argued for caution on cutting rates until the outlook becomes clearer.
Markets are currently pricing a high probability that the Fed will hold rates steady again at its April 28–29 policy meeting, which would mark a third consecutive pause.
Digital asset flows reflect longer-term positioning
Analysts say these macro and geopolitical uncertainties are shaping demand for digital asset ETFs. Some see easing monetary conditions later on as a potential tailwind for continued inflows, even if rate cuts are delayed in the near term.
The steady allocation from advisory firms and the entrance of new issuers point to a structural trend rather than a short-lived reaction. In a recent example, Goldman Sachs filed plans to launch a bitcoin-linked ETF, signaling continued interest from major financial institutions.
Overall, the substantial and persistent inflows into bitcoin and Ethereum ETFs suggest that many traders are using regulated funds to position for longer-term outcomes, despite unresolved risks around inflation, energy markets and Middle East diplomacy.
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