TLDR
- US-based spot Bitcoin ETFs attracted $462 million on Wednesday, marking three consecutive days of positive inflows
- BlackRock’s IBIT dominated with $307 million in single-day contributions
- Bitcoin touched $73,243, its highest level in 30 days, before retracing to approximately $72,200
- President Trump urged rapid approval of crypto legislation, improving market sentiment
- The Crypto Fear & Greed Index climbed 12 points yet remains in “extreme fear” territory with a reading of 20
Bitcoin (BTC) experienced significant upward momentum on Wednesday, momentarily piercing the $73,000 threshold for the first time in 30 days before consolidating around $72,200.
This price action coincided with robust activity in US spot Bitcoin exchange-traded funds, which collectively registered $462 million in net positive flows. The influx marked the third consecutive trading session with gains, pushing the three-day aggregate to $1.1 billion.
BlackRock’s iShares Bitcoin Trust (IBIT) dominated the field, capturing $307 million in single-day inflows. Fidelity’s FBTC contributed an additional $48 million, while the Grayscale Bitcoin Mini Trust secured $32 million.
CoinShares BRRR fund was the sole exception, reporting zero inflows for the session. All other US spot Bitcoin ETFs posted positive figures.
Year-to-date, ETF flows have climbed to approximately $700 million. This represents a significant turnaround from the earlier five-week withdrawal period that drained $3.8 billion from these investment vehicles.
Ethereum ETFs also participated in the rally, drawing $169 million on Wednesday following slight outflows in the previous session.
Presidential Support Boosts Market Confidence
President Donald Trump made public statements advocating for the swift enactment of pending cryptocurrency market structure legislation. He also voiced criticism of major US financial institutions for their opposition to yield-bearing stablecoin products.
These remarks resonated positively throughout crypto trading circles, strengthening optimism regarding the prospect of regulatory clarity in the United States.
The referenced legislation, dubbed the CLARITY Act, seeks to establish a comprehensive regulatory framework for digital asset markets. Legislative advancement has yet to materialize.
Traditional equity markets also enjoyed a favorable Wednesday session, which contributed to increased risk appetite and supported Bitcoin’s upward trajectory. News suggesting Iran might pursue diplomatic engagement with Washington further enhanced the positive atmosphere.
Geopolitical Tensions Emerge Thursday
Bitcoin surrendered a portion of Wednesday’s gains during Thursday morning trading after Iran refuted diplomatic overtures and conducted missile strikes against Israel.
US equity index futures reversed course on the developments, while crude oil prices spiked, raising concerns about potential inflationary pressures.
BTC was changing hands at $72,366 in early Thursday trading, representing a gain exceeding 5% for the day but remaining approximately 8% below levels seen 30 days prior.
Bitcoin has rebounded roughly 20% from its February trough of $60,000.
The Crypto Fear & Greed Index advanced 12 points during the 24-hour measurement period but continues to register a score of 20, placing it firmly within “extreme fear” classification.
Bloomberg ETF analyst Eric Balchunas observed that nearly all Bitcoin ETFs had transitioned to positive year-to-date net flows as of Tuesday, with just three funds still showing negative balances.
