Spot bitcoin ETFs log nearly $1 billion in weekly inflows, highest since mid-January

U.S. spot bitcoin (BTC) exchange-traded funds have reported their largest weekly net inflows since mid-January, bringing the positive flows to a third consecutive week.

According to data from SoSoValue, spot bitcoin ETFs posted $996.4 million worth of inflows last week, the largest weekly sum since the week ended Jan. 16. Over the past three weeks, the funds have drawn in more than $1.8 billion worth of funds.

Weekly inflows were led by BlackRock's IBIT, the largest bitcoin fund in net assets, which attracted $906 million during the period. Last week also marked the first full trading week for Morgan Stanley's MSBT, which launched on April 8. MSBT logged a weekly net inflow of $71 million.

Spot Ethereum ETFs also posted their highest weekly net inflows since Jan. 16, worth $275.8 million.

US-Iran peacemaking

"Institutional investors believe a permanent de-escalation in tensions between the U.S. and Iran is imminent, and are increasing their long positions on bitcoin ETFs as a result," Jeff Mei, COO of BTSE, told The Block.

The U.S. and Iran's two-week ceasefire agreement is set to expire on Wednesday, amid continued efforts for peacemaking between the two countries. While institutions weighed the potential end to the conflict, recent reports said that the U.S. seized an Iranian-flagged cargo ship in the Strait of Hormuz.

U.S. President Donald Trump announced earlier that U.S. negotiators are heading to Islamabad for a potential talk with Iran, while Iranian sources reportedly said its officials will not join peace talks unless the U.S. lifts its blockade of Hormuz. 

Amid seemingly re-escalating tensions in the Middle East, bitcoin edged down 0.25% in the past 24 hours to $75,006, while ether was down 0.6% to $2,301, according to The Block's crypto price page.

BTSE's Mei said retail demand is currently improving, but added that a sustained upward momentum requires additional rate cuts from the Federal Reserve. 

"This was the main factor affecting crypto inflows prior to the U.S.-Iran conflict, and will continue to weigh on sentiment in the mid- to long-run," Mei told The Block.