Traders pour nearly $1B into Bitcoin ETFs amid market volatility

Traders are employing contrasting exchange-traded fund (ETF) strategies to navigate volatile financial markets in 2025, according to Bloomberg Intelligence data.

Record inflows have been observed both in leveraged long ETFs, which amplify daily asset performance, and in risk-off assets such as cash and gold ETFs.

“There’s basically record flows going into leveraged long ETFs but also cash and gold ETFs as people buy the dip and hedge the dip at the same time,” commented Bloomberg Intelligence analyst Eric Balchunas on April 23.

In 2025, leveraged long ETFs attracted approximately $6 billion in net inflows, while cash and gold funds saw inflows near $4 billion.

This activity follows increased market turbulence after US President Donald Trump announced sweeping tariffs on imports on April 2.

Since then, the SP 500 has declined about 5%, while Bitcoin has shown relative resilience.

On April 22, Bitcoin spot price surpassed $90,000 for the first time in six weeks, with Bitcoin ETFs recording nearly $1 billion in net inflows.

“BTC has shown some signs of resilience, holding steady or rebounding on days when traditional risk assets faltered,” Binance noted in an April report.

The report also highlighted Bitcoin’s weak correlation with gold, averaging around 0.12 over the past 90 days, compared to 0.32 with equities.

“The key question is whether BTC can return to its long-term pattern of low correlation with equities,” the report stated, noting gold remains the preferred safe haven for many investors.

Meanwhile, cryptocurrency exchanges are capitalising on volatility by increasing activity in derivatives markets.

Net open interest in Bitcoin futures rose over 30% in April, reaching approximately $28 billion, per Coinalyze data.

At the time of reporting, the Bitcoin (BTC) price was $92,748.52.