Bitcoin ETF Inflows Near $4 Billion Amid Dollar Decline
U.S. spot Bitcoin exchange-traded funds (ETFs) extended their net inflow streak to twelve days on Wednesday, adding $547.7 million for a total of $3.9 billion during this period, as reported by The Block. BlackRock's IBIT fund leads these inflows, contributing $340.3 million in one day. With the U.S. dollar declining, Bitcoin's price has been bolstered, rising to $107,445, up 0.8% in 24 hours. Institutional interest in Bitcoin grows amidst weakening dollar and economic uncertainties. Meanwhile, U.S. spot Ethereum ETFs also saw inflows, adding $60.4 million. The decline of the U.S. Dollar Index and a gloomy growth forecast for 2025 support Bitcoin as a strong digital asset.
FAQ
❓ Why are Bitcoin ETFs seeing increased inflows?
The inflows are driven by growing institutional interest and the weakening of the U.S. dollar, which boosts Bitcoin as a hedge against currency fluctuations.
❓ How does the dollar's decline affect Bitcoin?
A weaker dollar makes Bitcoin more attractive as a non-correlated asset, leading to increased investor interest and price growth.
❓ What role do institutional factors play in Bitcoin's price?
Institutional flows strengthen Bitcoin's position as an asset class, and these inflows often coincide with price appreciation.