Bitcoin ETFs See Massive Inflows as BTC Price Hovers Around $108K
Bitcoin ETFs are experiencing a surge in popularity, with significant inflows this week. As Bitcoin’s price navigates around the $108,000 mark, investors are showing increased interest in these investment vehicles. Let’s delve into the details of this exciting development in the crypto world.
Record-Breaking Inflows
US-based spot Bitcoin exchange-traded funds (ETFs) have pulled in a whopping $2.75 billion this week. This surge comes as Bitcoin surpassed its previous all-time high from January, which was around $109,000. According to data from Farside, this week’s inflow is approximately 4.5 times greater than the previous week’s $608 million.
BlackRock’s IBIT Leads the Charge
On the last trading day of the week, spot Bitcoin ETFs saw inflows of $211.7 million. Notably, BlackRock’s IBIT was the only fund that showed gains, adding $430.8 million and marking its eighth consecutive day of inflows. This consistent performance highlights the growing confidence in BlackRock’s Bitcoin ETF.
Outflows from Other Funds
While BlackRock’s IBIT thrived, other funds experienced outflows. Grayscale’s GBTC led the pack with $89.2 million in outflows, followed by ARK 21Shares’ ARKB with $73.9 million. These shifts indicate a dynamic landscape within the Bitcoin ETF market.
Bitcoin’s Price Fluctuations
Two days prior, on May 21, Bitcoin ETFs recorded $607.1 million in inflows, coinciding with Bitcoin exceeding its $109,000 all-time high. The following day, Bitcoin reached a new peak of $111,970. As of the time of the report, Bitcoin is trading at $108,141, according to CoinMarketCap data.
Market Sentiment
Bitcoin’s recent price dip aligns with a decrease in overall crypto market sentiment. The Crypto Fear & Greed Index, a measure of market sentiment, has dropped from an “Extreme Greed” score of 78 to a “Greed” score of 66. This suggests a slight cooling off in the market’s enthusiasm.
Monthly Inflow Record in Sight
Spot Bitcoin ETFs are on track to potentially surpass their monthly inflow record of $6.49 billion from November 2024. So far in May, these ETFs have accumulated approximately $5.39 billion, with five trading days still to go. This impressive performance underscores the growing adoption of Bitcoin ETFs among investors.
Analysts’ Perspectives
Despite Bitcoin’s new all-time highs, analysts suggest that it is not showing signs of overheating. CryptoQuant analyst Crypto Dan noted that overheating indicators like funding rates and short-term capital inflow remain low compared to previous peaks. This suggests that Bitcoin’s rally could have more room to run.
Conclusion
The surge in Bitcoin ETF inflows reflects increasing investor confidence in Bitcoin. While some funds experience outflows, BlackRock’s IBIT continues to attract significant investment. As the market sentiment slightly cools, analysts remain optimistic about Bitcoin’s potential for further growth. Keep an eye on these developments as the crypto market continues to evolve. As reported by Cointelegraph.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
