The sentiment engine of Bitcoin ETFs is rewiring market structure

Bitcoin ETF inflows surged past $900 million in a single day, but this capital reallocation may be capping upside in the broader crypto market.

The tide of capital once destined for raw spot Bitcoin has begun to flow through institutional canals, spot exchange-traded funds (ETFs), structured products and wrapped exposure, and while the water is rising fast, the waves aren’t quite the same. 

Bloomberg’s senior ETF analyst, Eric Balchunas, pointed out on X that there is a large movement in leveraged long ETFs and, at the same time, safer bets like gold and cash. Suppose one had to choose if Bitcoin (BTC) was a risk-on or risk-off asset. In that case, it may come down to how investors interpret its narrative, whether they see it as digital gold or another speculative vehicle.

Bitcoin’s ETF ecosystem has entered a new phase of capital absorption. On April 23, 2025, daily inflows surpassed $912 million, setting a record for the year. This seemingly marked a dramatic return to bullish sentiment just weeks after prolonged outflows.

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