Despite the recent stagnation of inflows into BlackRock's Bitcoin ETF, market participants remain confident about the future of the queen of cryptos. According to a Bitwise executive, the growing adoption of ETFs by institutional investors and potential interest from central banks could propel the price of BTC to $250,000 by the next halving in 2028.
ETF flows take a break
After a first quarter marked by record inflows, notably reaching $6 billion in February, spot Bitcoin ETF flows in the United States experienced a notable slowdown in April. BlackRock's IBIT recorded zero daily inflows for two consecutive days, April 24 and 25, while cumulative outflows stood at $338.2 million according to SoSo Value data.
This has sparked concern among some market observers, while others are focusing on the imminent launch of the ETF in Hong Kong and potential demand from leading financial institutions such as Morgan Stanley.
However, some analysts put things into perspective these short-term prospects. Kamikaze Fiat points out that it took massive $12.5 billion inflows into ETFs to push BTC from $44,000 to $73,000, and questions the ability of Morgan Stanley or Hong Kong ETFs to generate sufficient demand to support a significant increase.
A rebound in Bitcoin ETF flows on the horizon?
Although spot Bitcoin ETF inflows saw a sharp decline in the second quarter, Bitwise Chief Investment Officer Matt Hougan remains optimistic about the future outlook. He anticipates further inflows in the coming months, driven by growing adoption of ETFs by domestic brokerages and growing interest from institutional investors.
Additionally, Hougan predicts additional demand from central banks ahead of the halving of 2028. He highlights Bitcoin's unique characteristics as a non-borrowable asset that cannot be seized by foreign governments, much like gold. . In this mass adoption scenario, the Bitwise manager predicts a Bitcoin price exceeding $250,000 by 2028.
In short, if the craze for spot Bitcoin ETFs marks a pause in the United States, the long-term outlook remains favorable. Growing adoption by institutional investors and potential interest from central banks could propel the BTC price to new highs by the next halving. In the short term, the decisions of the US Treasury will be decisive for the direction of the market.
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