Spot Bitcoin ETFs such significant influxes in the first quarter despite the paralyzed price, and at least one analyst see the next three months as even bigger, although prices are not recovering.

“Even if the current market conditions persist in the second quarter, we see strong traction from financial advisers and institutional investors,” said Juan Leon, senior investment strategist at Bitwise (if BitB is among Bitcoin ETFS).

“While retail interest is weak due to the fixation of price action, professional investors recognize the global adoption momentum spurred by Trump administration’s embrace of Bitcoin, and many see these market conditions as an opportunity to start or increase an award,” Leon added.

The ETFs saw over $ 1 billion in influx in the first quarter of the year despite a challenging macro situation that sent the S&P 500 index to its biggest quarterly loss since 2022 and Bitcoin’s 13% jump.

Leon expects the influx to be even stronger in the second quarter – as much as $ 3 billion or even more when wirehouse platforms unlock and regulatory political progress.

ETF -AFTER POSSIBLE Possibly less than meets the eye

The $ 1 billion net stream in the first quarter – and no matter what the second quarter brings – do not necessarily reflect investor interest in buying Bitcoin DIP. It is because of the so -called basic trade (also known as cash and carry). In this, institutional players buy spot -bitcoin ETF while maping CME Bitcoin futures and picking up dividends without exposure to price movement.

This dividend was well into double digits by the end of 2024 and remained nicely over the risk -free rate throughout large parts of the first quarter. It is collapsed to the 5% of the late one, suggesting that arbitrage-related ETF flow can dry up.

Back to the Bull Case: It’s still early

“Although a favorable prism will definitely be a boost, it is important to remember that the adoption of Spot Bitcoin ETFs of these groups is still in its infant,” said Nate Geraci, president of the Etf store, which is also bullish with the prospects of influx for the rest of the year. toward the fellow, “he added .., he added .. ,, he added .., he ,, he added .., he added ..” As they grow more comfortable to allocate to Bitcoin, this should give a meaningful tailor

While many institutions have already made their first allocation to Bitcoin in the past year, it only represents a small fraction of ETF investments, with most of the money still coming from the retail investor-something recently noted by Blackrock CEO Larry Fink, if Ibit is the active collection leader among ETFS. The more favorable legislative attitude towards the industry, not to mention the government’s own potential allocation to Bitcoin, but means that the relationship could soon change significantly.

During an ETF conference in Las Vegas earlier this month, a survey found that 57% of advisers are planning to increase their awards to crypto -Tfs this year, as Crypto has lost the “reputation of the attribute” among advisers.

The view that Bitcoin could serve as a “safe harbor” in times of an economic decline that investors remain anxious over can also increase confidence in the asset, especially when fear of a potential recession is growing.

“If we see continued expectations of cutting, signs of financial uncertainty, or elaboration of fear of a potential recession in the United States, Bitcoin’s role as ‘digital gold’ is likely to support further influx,” said David Siemer, CEO of Wave Digital Assets. “While some short -term dealers can rotate out if pricing persists, long -term players will continue to keep the influx strong, especially when institutional adoption starts and drives demand all year round.”