US-listed spot Bitcoin exchange-traded funds recorded their highest weekly inflow in nearly two months, attracting over $786 million last week. This significant increase nearly matched the previous peak seen in late February, reflecting renewed investor interest after a quieter stretch in the market.
Institutional demand powers inflows
The inflow surge was largely attributed to heightened demand for BlackRock’s iShares Bitcoin Trust, which pulled in around $612 million during the week. BlackRock, a global investment management firm known for its extensive ETF offerings and $10 trillion in assets under management, has continued to attract substantial allocations to its Bitcoin product since its launch at the start of 2024.
This wave of demand came after several weeks of subdued flows, during which market turbulence and international tensions led to risk-off sentiment among investors. However, the recent rally in Bitcoin’s price helped draw buyers back into the ETF market, prompting institutional investors to increase their exposure.
SoSoValue, a crypto ETF data platform, detailed that fund flows were uneven throughout the week. The ETFs started strongly on Monday with $471.32 million coming in, then posted some outflows midweek before rebounding in the final days. This pattern suggested shifting sentiment as traders responded to both price action and broader economic factors.
Morgan Stanley launches new Bitcoin fund
Morgan Stanley’s launch of its spot Bitcoin ETF, the MSBT fund, added another focal point for the sector. Morgan Stanley is a major American investment bank and financial services company, overseeing trillions in client assets and operating a network of approximately 16,000 financial advisers globally. The MSBT fund took in about $46 million within its first three days of trading, signaling early interest but still well behind BlackRock’s scale.
The arrival of Morgan Stanley’s ETF has been viewed as significant given the company’s powerful distribution network. Its widespread reach may create more opportunities for traditional investors to access Bitcoin exposure through regulated vehicles.
Despite collecting a smaller sum, MSBT’s entry comes as the broader ETF group regains momentum, marking a new phase in institutional participation. The greater diversity of issuers could further stimulate flows and competition among funds.
Throughout the week, Bitcoin itself rallied from near $67,000 to over $70,000, closing around $73,411—a gain of roughly 9%. The sharp rise in price coincided with improved fund flows and underlined renewed risk appetite among market participants.
This recent uptick marked one of Bitcoin’s most notable weekly advances in recent months, offering investors a strong signal of market recovery after previous sell-offs.
Overall, data from the past week suggested that institutional demand remains robust, particularly for the largest and most liquid ETFs, while new products from established financial institutions are starting to expand choices for investors.
