Bitcoin and Ethereum ETF Inflows Soar as Institutional Demand Returns

Investors poured nearly $2 billion into Bitcoin spot exchange-traded funds (ETFs) over the past five business days, marking a 10-month high in institutional demand. The Ethereum counterparts also attracted significant inflows, reaching a multi-month peak with around $700 million in fresh funds.

The surge in investor appetite began after the US Treasury Department announced it would double the maximum size of liquidity-support buybacks for longer-dated government debt. This move had a positive impact on risk-on assets like crypto, leading to increased investor interest.

The spot Bitcoin ETFs attracted $1.92 billion in net inflows, with Wednesday's announcement sparking a significant increase in investor appetite. The funds tracking the largest cryptocurrency recorded a perfect week of net inflows, exceeding $2 billion at one point.

Ethereum ETFs also saw substantial gains, with nearly $700 million entering the funds over the past five business days. This represents a multi-month peak for Ethereum ETF inflows and highlights increasing institutional interest in the asset.