Q2 Bitcoin ETF Inflows Could Hit $3B Without Any Price Recovery, Expert Predicts

Bitcoin ETFs Defy Market Weakness With Over $1B in Inflows — More Growth Expected in Q2

Despite soft price action and a turbulent macroeconomic backdrop, spot bitcoin ETFs attracted more than $1 billion in net inflows during the first quarter, according to analysts — and momentum could build even further in Q2.

Juan Leon, senior investment strategist at Bitwise Asset Management, said institutional engagement is picking up. “Even in the current environment, we’re seeing growing participation from financial advisors and allocators. They’re increasingly focused on bitcoin’s strategic role, especially following the U.S. government’s decision to form a Strategic Bitcoin Reserve,” he said.

While retail investors have shown less enthusiasm — still closely watching price trends — professionals appear to be capitalizing on weakness to begin or expand long-term allocations.

Despite bitcoin dropping 13% and the S&P 500 posting its worst quarterly performance since 2022, capital flowed steadily into ETFs like Bitwise’s BITB. Leon believes second-quarter inflows could exceed $3 billion, especially as more platforms onboard bitcoin ETFs and regulatory clarity improves.

However, not all inflows reflect outright bullish conviction. A significant portion may stem from basis trades — a strategy involving spot ETF purchases hedged by shorting CME bitcoin futures. While previously lucrative, this arbitrage play has seen yields decline to around 5%, potentially reducing its appeal.

Still, industry watchers like ETF Store president Nate Geraci view the broader trend positively. “Institutional bitcoin adoption is just beginning. As confidence builds, ETF inflows should remain strong even without a major price rally,” he said.

BlackRock CEO Larry Fink also noted that while retail leads for now, institutional interest is ramping up and may soon dominate.

A recent advisor survey at an ETF conference in Las Vegas showed that 57% of financial professionals plan to increase crypto ETF allocations this year, citing reduced reputational risk and rising mainstream acceptance.

David Siemer, CEO of Wave Digital Assets, added that macroeconomic uncertainty could further fuel demand. “If concerns over recession or rate cuts persist, bitcoin’s narrative as ‘digital gold’ becomes even more compelling,” he said.

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