Despite global risks, Bitcoin ETFs experience inflows of $1.3B
Bitcoin has demonstrated notable resilience in the face of escalating geopolitical instability, with spot exchange-traded funds (ETFs) experiencing five straight days of capital inflows totaling more than $1.3 billion.
Data from Farside Investors shows that institutional investors began significantly increasing their exposure to Bitcoin ETFs starting Monday, June 9. That day alone saw $386 million in inflows, followed by an additional $301 million by Friday—marking a strong rebound from the $128 million in outflows recorded the previous week.
BlackRock’s iShares Bitcoin ETF (IBIT) was at the forefront of this trend, drawing $238 million in a single day. IBIT has now seen total inflows nearing $50 billion, with assets under management reaching $70 billion. If this momentum persists, IBIT could soon rival the SPDR Gold Trust, which currently manages $103 billion in assets.
Other major players have also benefited from renewed interest: Fidelity’s FBTC has attracted more than $11 billion in assets, while Bitwise’s BITB has surpassed the $2 billion mark since its launch. The surge in ETF investments underscores a rising institutional appetite for Bitcoin, particularly during periods of global uncertainty.
BTC price resilience amid geopolitical risks
Following Israeli airstrikes on Iran, Bitcoin’s price briefly dipped below $103,000 but quickly rebounded to around $105,000. This recovery occurred despite $422 million in liquidated long positions, indicating strong buyer support—likely driven by ETF investors capitalizing on the dip, according to Cointelegraph.
Nic Puckrin from Coin Bureau pointed out that although conflicts like the Israel-Iran situation can affect markets in the short term, long-term trends are more influenced by macroeconomic indicators such as the declining U.S. Dollar Index (DXY). He cautioned, though, that shutting the Strait of Hormuz—which manages 20% of global oil shipments—could lead to significant market disturbances.
Supply squeeze and long-term growth potential for BTC
The amount of Bitcoin held on exchanges has decreased from 1.5 million in January to 1.1 million, indicating a reduction in selling pressure. When combined with rising capital inflows, this supply squeeze could lead to further price increases.
Indicators from technical analysis suggest that Bitcoin could be poised to break free from a prolonged sideways trend lasting several years. According to optimistic forecasts, the price is expected to reach $1 million in the medium term and as high as $2.3 million by 2030. Bitcoin is currently just 6% off its all-time high despite geopolitical shocks, highlighting its resilience and increasing role as a hedge against systemic risk.
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