Weekly Digest: April 2025 | Week 5

Highlights

• Bitcoin rallies to $95K, posting strongest week since Nov 2024 on $3B ETF inflows

• Strategy expands holdings to 553K BTC, corporate Bitcoin adoption up 16% in Q1

• Ethereum ETFs see $150M inflows, hinting at renewed institutional interest ahead of Pectra

• Bond yields spike amid ongoing trade war tensions, 10Y at 4.65%, 30Y at 5.15%

• Bitcoin shows resilience, increasingly viewed as a macro hedge by institutions

Market Highlights

Bitcoin (BTC) surged to nearly $95,000 last week, recording its strongest performance since November 2024. This move is largely attributed to a resurgence in institutional demand and one of the most significant weeks for spot Bitcoin ETF inflows since the products launched. Total weekly inflows into U.S.-listed spot Bitcoin ETFs reached $2.68 billion, a dramatic turnaround after several weeks of muted or negative flows.

The positive sentiment wasn’t limited to Bitcoin. Ethereum also saw $150 million in inflows into spot ETFs, breaking a multi-week trend of outflows. Ethereum has been lagging behind in recent months due to concerns over fee structures, staking clarity, and Layer 2 scaling value capture. However, institutional interest seems to be slowly returning.

Meanwhile, broader macroeconomic conditions remain volatile. Long-term Treasury yields climbed once again, reflecting persistent concerns over inflation and global trade uncertainty. Despite this, crypto appears to be emerging as a resilient asset class amid broader market instability.

Institutional Adoption Surges

One of the standout stories this week is the continued and growing institutional appetite for Bitcoin.

According to public filings and blockchain analytics, publicly listed companies increased their Bitcoin holdings by 16% in Q1 2025 alone, adding over 95,000 BTC to corporate treasuries. Among the most aggressive was Strategy, which added 15,355 BTC in April, bringing its total reserves to over 553,000 BTC — now worth more than $50 billion.

Strategy's consistent purchases over the past several quarters, and its ability to raise capital through preferred stock offerings and convertible notes, reflect a growing financial engineering strategy where Bitcoin plays a central role. Other firms, including Metaplanet, GameStop, and several Asian-listed fintech players, have followed suit with smaller but symbolically important purchases.

This shift signals a broader trend: Bitcoin is no longer viewed solely as a speculative asset. It’s increasingly being treated as a strategic treasury reserve, akin to digital gold, particularly by tech and fintech companies seeking non-correlated hedges against macro instability and inflationary risks.

ETF Inflows Turn Bullish

After four weeks of net outflows, the tide has turned decisively in favor of spot ETFs. U.S.-listed Bitcoin ETFs saw net inflows of $3 billion last week, making it the second-largest weekly inflow since the category launched in January 2024.

BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, continuing to dominate the ETF space both in terms of daily volume and overall assets under management. ARK Invest and Fidelity also saw sizable inflows into their respective products, ARKB and FBTC.

These inflows reflect not only renewed institutional interest but also growing retail participation, particularly through retirement accounts and brokerage platforms that have integrated Bitcoin ETFs into standard portfolio options.

Ethereum ETFs, which have struggled to maintain momentum, finally saw some signs of life, with $150 million in net inflows for the week. This modest but encouraging figure suggests that institutional allocators may be cautiously increasing ETH exposure, perhaps in anticipation of future staking integration or the long-expected "Pectra" upgrade.

Ethereum: Lagging but Stabilizing

Ethereum's underperformance relative to Bitcoin has been a recurring theme throughout 2025, with the ETH/BTC ratio hitting a five-year low in recent weeks. However, the latest ETF inflows suggest sentiment may be shifting.

The narrative surrounding Ethereum is evolving. Despite challenges such as declining Layer 1 fee revenue, the continued success of Layer 2 ecosystems like Arbitrum, Optimism, and Base is driving increased on-chain activity. The upcoming "Pectra" upgrade, which includes features aimed at improving validator efficiency and MEV resistance, is also beginning to draw attention.

Moreover, speculation is mounting that the SEC may approve Ethereum ETF staking features later this year. Several major issuers, including Grayscale and BlackRock, have filed applications requesting permission to offer staking within ETF wrappers. If approved, this would differentiate Ethereum ETFs from their Bitcoin counterparts and could drive a new wave of institutional demand.

Macro Backdrop: Trade Tensions Persist

Despite the crypto rally, the macro backdrop remains complicated. The U.S. bond market experienced significant volatility last week. The 10-year Treasury yield rose to 4.65%, marking its highest level since 2022, while the 30-year yield briefly touched 5.15%. These sharp moves reflect growing investor concerns over trade policy, inflation, and potential stagflation.

The global trade environment remains tense. The Biden administration’s tariffs on Chinese tech imports, including semiconductors and electric vehicles, have triggered retaliatory measures from China. While markets initially panicked, subsequent policy clarifications helped soothe nerves.

Crypto assets, especially Bitcoin, appear to be showing relative strength as investors seek alternatives to traditional asset classes affected by these uncertainties. This behavior supports the growing thesis that Bitcoin may be evolving into a geopolitical hedge, not just a monetary one.

Closing Thoughts

This past week marked a powerful shift in market sentiment. Institutional capital is flowing back into crypto at a meaningful scale, Bitcoin is approaching all-time highs, and Ethereum may be beginning a slow but steady reversal of fortunes.

At the same time, macro headwinds persist. Treasury yields are rising, trade wars are heating up, and regulatory uncertainty still looms large in many jurisdictions. But amid all of this, crypto is holding its ground — and in some cases, thriving.

FinchTrade continues to support institutions and active participants with deep liquidity, automated execution, and market-leading insight. As the landscape evolves, so too does our mission: to provide clients with the tools, intelligence, and infrastructure they need to succeed.

FinchTrade is here to provide reliable execution, flexible liquidity, and trusted market insights through every macro regime.

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