Bitcoin exchange-traded funds (ETFs) have demonstrated a remarkable five-day inflow streak, showcasing resilience amidst escalating geopolitical tensions and broader economic uncertainties. This positive trend reflects growing investor confidence in Bitcoin as a store of value and a hedge against global instability.
The inflow streak began on Monday, June 9, 2025, with over $386 million flowing into Bitcoin ETFs and continued through Friday, with an additional $301 million in inflows. In total, over $1.3 billion in capital moved into Bitcoin ETFs over the past five days. Friday's inflows occurred even as Bitcoin's price experienced a temporary dip to nearly $100,000, indicating a "buy the dip" mentality among investors. This influx of capital signals a strong belief in Bitcoin's long-term potential, even when faced with short-term price volatility.
Several factors contribute to this sustained inflow. The most prominent is the ongoing geopolitical turmoil, particularly the conflict between Israel and Iran. Such events often drive investors towards safe-haven assets, and Bitcoin is increasingly viewed as such an asset. The situation remains tense, with retaliatory military strikes raising concerns about a full-blown regional war. The potential closure of the Strait of Hormuz, a vital waterway for global oil supply, further exacerbates these anxieties, potentially leading to energy price spikes and broader market disruptions.
Despite these challenges, Bitcoin has held relatively steady, hovering around $105,000. This stability suggests a degree of strength and investor confidence that sets it apart from traditional risk-on assets that might typically suffer more significant losses during times of geopolitical uncertainty.
BlackRock's iShares Bitcoin Trust (IBIT) has been a major beneficiary of this trend, reporting substantial net inflows and extending its inflow streak. Fidelity Wise Origin Bitcoin Fund (FBTC) and Bitwise Bitcoin ETF (BITB) have also seen positive inflows, contributing to the overall momentum. BlackRock's IBIT has reached $70 billion in assets, and it is now the fastest-growing ETF in finance.
The inflows into Bitcoin ETFs represent a significant shift in market sentiment. After a period of outflows, this renewed interest suggests a belief that Bitcoin can weather current storms and potentially thrive in the long run. Some analysts point to the weakening US dollar index (DXY) as a key driver, noting that Bitcoin typically moves in the opposite direction of the DXY.
Moreover, the diminishing Bitcoin supply on exchanges further supports a bullish outlook. The amount of Bitcoin available on exchanges has decreased from 1.5 million in January to 1.1 million currently. This reduced supply, coupled with sustained or increasing demand, could exert upward pressure on the price of Bitcoin.
While geopolitical factors play a crucial role, other elements also influence Bitcoin's price. Legislative developments, macroeconomic data, and continued ETF flows will all be important factors to watch in the coming weeks.
