Cryptocurrency Attracts $14 Billion in a Single Week, Bitcoin ETF and Geopolitical Easing as Main Drivers

BroadChain BroadChain learned that at 19:00 on April 21, according to NewsBTC, the cryptocurrency market sentiment indicator "Fear and Greed Index" rose above 29 on Monday, marking the first time since January 29 that it has moved out of the "extreme fear" zone. Capital flows confirm this shift in sentiment. According to CoinShares data, cryptocurrency investment products recorded a net inflow of $1.4 billion last week, the second-largest weekly inflow since January, with a total net inflow of $27 billion over three consecutive weeks. The total assets under management for related products rebounded to nearly $155 billion, the highest level since early February. James Butterfill, Head of Research at CoinShares, noted that the recovery in risk appetite is primarily related to progress in U.S.-Iran ceasefire negotiations, and Bitcoin's price approaching $78,000 last Friday also boosted market sentiment. Funds were concentrated in Bitcoin and Ethereum products. Bitcoin ETPs saw a weekly inflow of $1.12 billion, bringing the year-to-date cumulative inflow to $30 billion, with assets under management reaching $123 billion, of which U.S. spot Bitcoin ETFs contributed approximately $1 billion. Ethereum ETPs recorded a weekly inflow of $328 million, the strongest performance since January, turning the year-to-date inflow positive at $197 million. Fund flows showed significant divergence, with XRP products experiencing an outflow of $56 million and Solana products an outflow of $2.3 million. Short Bitcoin products saw only a $1.4 million inflow, indicating weak bearish sentiment. Geographically, the U.S. dominated with a $1.5 billion inflow, Germany saw an inflow of $28 million, while Switzerland experienced an outflow of $138 million. Although the U.S. March CPI year-on-year reached 3.3% and core inflation was 2.6%, the market generally believes that core inflation is under control and driven by supply-side factors, with no significant impact on capital flows.