Bitcoin ETFs pull $1B inflow following Strait of Hormuz reopening

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US-listed spot Bitcoin exchange-traded funds (ETFs) experienced their largest single-day capital inflow since January on April 17, following the reopening of a critical Middle Eastern shipping route which sparked a broader market rotation into risk assets.

According to data from SoSoValue, these 12 products attracted approximately $664 million in fresh capital on April 17.

The surge was triggered by an announcement from Iran’s foreign minister regarding the reopening of the Strait of Hormuz for commercial shipping during the ceasefire period.

This development, confirmed by US President Donald Trump, alleviated concerns about global energy supply disruptions, leading to a significant daily investment in spot Bitcoin ETFs.

The BlackRock’s iShares Bitcoin Trust (IBIT) led the way with a $284 million inflow on Friday. Following closely were Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $163.4 million and the ARK 21Shares Bitcoin ETF (ARKB) with $117.9 million.

Morgan Stanley’s MSBT fund also saw early success, attracting $16.6 million during the session.

Remaining Cautious

Despite the strong figures, market analysts remain cautious about the sustainability of Bitcoin’s current rally.

Ecoinometrics, a digital asset analytics platform, highlighted that although recent flows indicate active market participation, they lack the consistent momentum needed for a sustained breakout.

The firm stated:

“The daily data is inconsistent. Inflows are interspersed with outflows, and more importantly, we haven’t seen any of the large single-day inflows that typically mark a strong wave of demand. When a rally is backed by conviction, flows will cluster and build momentum. That has not happened yet.”

Considering this, Ecoinometrics concluded that Bitcoin is currently priced at baseline flow levels, with no indication of demand pushing the market beyond that point.

Analysts warned that without a significant increase in capital injections and consistent momentum, Bitcoin’s attempt to sustain upward movement may remain fragile.

Bitcoin ETFs See Strongest Weekly Inflow

The surge on April 17 marked the strongest weekly performance for US ETFs since January.

Supported by the late-week rally, the suite of US ETFs attracted a total of $996 million in net inflows over the five-day period, the highest weekly intake since early January.

This significant influx helped recover what started as a volatile trading week, with outflows on Monday followed by gains in the following days.

Over the past three weeks, these ETFs have attracted around $1.7 billion in fresh capital, bringing total net assets to over $101 billion, with cumulative net inflows of $57 billion since inception.