Bitcoin ETF Inflows Continue Despite Britain, US Likely to Join Iran-Israel War

Bitcoin ETF inflows highlight sustained institutional demand for BTC as a hedge alongside Gold amidst the intensifying Iran-Israel conflict.
By Bhushan Akolkar
Bitcoin ETF Inflows Rise With Gold as Britain, US Likely to Join Iran-Israel War

Highlights

  • Spot Bitcoin ETFs witnessed $386 million in net inflows on Wednesday, with BlackRock's IBIT leading.
  • U.S. Bitcoin ETFs have now recorded a total a total of $11.25 billion in net inflows in 2025.
  • The Iran-Israel conflict continues to escalate, with reports suggesting potential U.S. and U.K. involvement.
  • Bitcoin price has stabilized around $104,000 with STH/LTH Supply Ratio has dropped to 15.7%.

Amid rising tensions in the Iran-Israel conflict, Bitcoin ETF inflows have surged alongside a spike in Gold prices. On Wednesday, net inflows into BTC ETFs reached $386 million, nearly double the previous day’s figure, signaling increasing institutional confidence. These inflows came after Jerome Powell’s FOMC meeting, which maintained unchanged interest rates, as the crypto market adopts a cautious stance amid ongoing geopolitical uncertainties.

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Bitcoin ETF Inflows Surge Amid Iran-Israel Conflict

Inflows into spot Bitcoin ETFs surged all the way to $388 million across all the US ETF issuers on Wednesday. BlackRock’s iShares Bitcoin Trust (IBIT) once again led the pack with $280 million in inflows, while Fidelity’s FBTC managed to recover the lost ground with over $100 million in inflows. BlackRock’s IBIT purchased an additional 2861 Bitcoins yesterday, taking its total BTC holdings to 680,336, as per the official IBIT data.

BalckRock Bitcoin ETF inflows rise again.
Source: BTC Wealth

The US Bitcoin ETFs have witnessed strong inflows for eight consecutive trading sessions. Since the beginning of 2025, these products have netted a total of $11.25 billion in net inflows, showing strong institutional demand.

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Iran-Israel Conflict Can Escalate With Britain, US Joining

Geopolitical tensions are on the rise amid the ongoing Iran-Israel conflict, with superpowers like US and UK hinting that they are willing to join the war. As per the latest Bloomberg report, senior officials in the US are preparing for a strike on Iran. This comes as Trump denied any peace talks with Iran in the ongoing conflict earlier this week.

Some of the sources told Bloomberg that Washington officials are assembling the infrastructure in order to engage in a direct conflict with Tehran. According to The Times, Britain is weighing the possibility of joining a conflict against Iran if the United States intervenes alongside Israel.

Ahead of the FOMC meeting, Bitcoin price faced selling pressure and is currently holding support at $104K. As the geopolitical conflict escalates, investors take a wait-and-see approach.

The STH/LTH Supply Ratio has declined to 15.7%, dipping below its statistical low band. This indicates that short-term traders remain inactive, while long-term holders continue to maintain their positions.

Bitcoin Investors Stay Put as Iran-Israel conflict escalates
Source: Kyledoops
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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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