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▲ Bitcoin (BTC), Ethereum (ETH), XRP/ChatGPT generated image
Investor sentiment is rapidly recovering as signs of renewed capital inflow emerge in the spot ETF markets for Bitcoin (BTC), Ethereum (ETH), and XRP.
According to cryptocurrency media outlet CryptoPotato on April 20 (local time), major virtual asset ETFs saw massive capital inflows following a recent trend of easing global tensions over approximately 10 days. In particular, expectations of reduced conflict in the Middle East are believed to have stimulated investor sentiment, leading to a renewed preference for risk assets.
Bitcoin ETFs reversed the market mood in an instant. On April 17 alone, approximately $663 million flowed in net, marking the largest inflow since mid-January this year. On a weekly basis, nearly $1 billion in capital flowed in, showing the strongest recovery in three months.
Ethereum ETFs also followed suit. Approximately $275 million flowed in net over a week, also reaching its highest level since January. Notably, capital inflows continued for 7 consecutive days, indicating a rapid recovery of investor interest.
XRP ETFs also joined the rebound trend. Over the past week, more than $55 million in capital flowed in, marking a three-month high. This is interpreted as a sign that investment demand, which had been subdued for some time, is coming back to life.
However, this recovery is highly dependent on external variables. As the situation in the Middle East enters an uncertain phase again, there is a possibility that investor sentiment will also increase its volatility. Since the easing of geopolitical tensions triggered capital inflows, an analysis suggests that if the situation reverses, it could lead to capital outflows again.
The virtual asset ETF market is being restructured into a system closely linked to the global macroeconomic environment, beyond simple price movements. Investors are not only focusing on the short-term increase in capital inflows but also whether this trend will lead to a sustainable trajectory.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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