Bitcoin ETFs Soar on Bond Buyback Plans, Turn Around $6B Loss

Bitcoin ETFs have made a remarkable turnaround after struggling earlier this year. Just two weeks ago, they were nearly $6 billion in the red for the year, but last week saw net inflows of $2.4 billion, their largest weekly haul since October.

This puts the funds back in positive territory for 2026, with a total value of around $934 million. BlackRock's IBIT led the charge, taking in $1.2 billion alone, followed by Fidelity's FBTC at $701.7 million and Ark/21Shares' ARKB at $294.7 million.

The inflows are attributed to the Treasury Department's plan to step up buybacks of long-dated bonds, which has drawn $4.6 billion into Bitcoin ETFs since its announcement. Additionally, Bitcoin is currently trading above the average ETF investor's cost basis of $81,722 for the first time since January.

While last week was a significant milestone, analysts warn that it may be too early to tell if this trend will continue throughout the year. To match last year's record inflow of $21.35 billion, the funds would need to average around $300 million per day through the end of the year.