Although Bitcoin is going through a difficult phase, analysts at Bitwise are optimistic – especially regarding ETFs. Even if Bitcoin’s price performance continues to disappoint, they expect inflows of three billion dollars for the second quarter of 2025.
Institutional Demand for Bitcoin Increases
“Even if current market conditions continue into the second quarter, we are seeing strong interest from financial advisors and institutional investors,” says Juan Leon of Bitwise.
“While retail investors are acting with some hesitancy due to price developments, professional investors are recognizing the global momentum surrounding Bitcoin adoption – fueled by the Trump administration’s support for BTC. Many see the current market situation as an opportunity to enter Bitcoin or increase their positions,” adds Leon.
Bitcoin ETFs recorded one billion dollars in inflows in the first quarter – despite a challenging macroeconomic environment that caused the S&P 500 to post its largest quarterly loss since 2022 and caused Bitcoin to fall 13%.
Bitcoin adoption is still in its infancy at the institutional level
At the institutional level, Bitcoin adoption is still in its very early stages, says Nate Geraci of ETF Store. As an ETF expert, he is also optimistic about inflows for the remainder of 2025.
“As institutional players become increasingly comfortable with buying Bitcoin, ETFs should see significant tailwinds,” says Geraci.
The coming months will show whether analysts are correct in their assessment. There are numerous positive developments surrounding Bitcoin, but at the same time, there is also a great deal of uncertainty hanging over the market.
Consider Donald Trump‘s trade war or the ailing US economy. The global economic and financial environment has been more stable than it is today.
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