BlackRock’s Bitcoin ETF is in the top 1% of performers in this category despite tariff disruptions. Analysts theorize that the issuer is stabilizing Bitcoin volatility, and the ETF market will make BTC safer in the future.
The issuer acts as a major whale and buys token dumps from retail investors. However, this new stability is entirely conditioned on these powerful companies and is exposed to broader macroeconomic concerns.
Do ETFs stabilize Bitcoin?
Trump’s tariff threat has brought chaos and uncertainty to the global market, but Bitcoin prices have been relatively good. It fell from its all-time high in January, but its price shelves far outperformed its performance before the November election.
According to one analyst, ETFs may be offering this additional stability to Bitcoin.
“Bitcoin ETFs issued an aggressive inflow the past month, with YTD and IBIT in +2.4 billion YTD (top 1%). It’s impressive and in my opinion it helps explain why BTC prices are relatively stable.
They completely changed the crypto industry as Bitcoin ETF first came to the market, but it was difficult to quantify the transformation.
However, this imminent economic crisis has given analysts a useful opportunity to collect hard data from stress tests. Balchunas has bolstered some changes, highlighting the strong demand for ETF publishers for BTC.
Over the past few months, US ETF publishers have purchased a huge amount of Bitcoin. Collectively, they outweighed Satoshi’s holdings in December and bought 20 times the BTC in January, just as much as global mining production. Who has encountered this obvious supply crisis? Retail investors.
Weekly Bitcoin ETF inflows in 2025. Source: SosoValue
Bitcoin is now more integrated into traditional finance than ever before, and there are several opportunities. For some reason, retailers are forced to throw away their tokens.
Normally these actions can surprise the market, but ETF publishers (and Michael Saylor’s strategy) are willing to buy as much Bitcoin as possible.
In other words, these whales have done a lot to keep them confident in the market as a whole. Ideally, ETF issuers could have a largely positive impact on the sector and cure Bitcoin’s infamous chronic volatility.
Unfortunately, this substantial change has serious practical drawbacks, and even the fear of desolation is discounted. Since ETFs transformed the market like this, Bitcoin has never been more entangled with the broader macroeconomic trends.
However, these trends could lead to these big whales being sold. Can these actors afford to tie the fate of Bitcoin?
ETF issuers have high trust in Bitcoin, which stabilizes prices through fee confusion. If they lose that confidence for any reason, it can cause a strong demand crisis.
This investment trend has been a major benefit for the crypto industry, but it is important to be aware of potential risks.
