Spot Bitcoin exchange-traded funds (ETFs) attracted over $1 billion in net inflows last week, marking their best performance in more than three months. This surge coincides with a shift in investor focus towards riskier assets, driven by easing global tensions.
Last week, Bitcoin ETFs saw $996 million in net inflows, the highest weekly intake since early January. Friday alone recorded $663.9 million in inflows, contributing to a total of $4.8 billion in daily trading volumes. Combined net assets for all spot Bitcoin ETFs surpassed $101 billion by Friday.
Analysts suggest markets are now pricing in de-escalation, particularly in US-Iran relations, reducing demand for traditional safe havens like the US dollar. Despite conservative Federal Reserve stances on rate cuts, concerns about US debt demand and long-term returns are eroding faith in "risk-free" assets, bolstering investment in Bitcoin and other alternative assets.
An announcement regarding the Strait of Hormuz reopening to commercial shipping, contingent on continued truce, allayed immediate fears of oil transit disruptions. This development saw Bitcoin's value climb above $78,000, while Brent oil prices dropped over 10% to approximately $85 per barrel.