Investors Channel $2.75 Billion into Bitcoin ETFs Amid Price Surge
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Spot Bitcoin ETFs brought in $2.75 billion this week, nearly 4.5 times the $608 million from the previous week. Prices exceeded $109,000, marking the highest level since January. On May 22, Bitcoin even reached $111,980. Investors eagerly participated as the market momentum surged.
Additional Insights
Significant Growth in Spot Bitcoin ETF Inflows
As reported by Farside, spot Bitcoin ETFs collected $2.75 billion this week, a significant rise from $608 million the week prior. This surge coincided with Bitcoin surpassing its January peak of $109,000.
On May 21, investors contributed $607 million, coinciding with Bitcoin achieving a new high. The next day, the coin peaked at $111,980, indicating robust investment interest in new price milestones.
BlackRock’s IBIT Dominates ETF Inflows
Despite overall ETF flows of just $212 million on May 23, BlackRock’s IBIT led the way, attracting $431 million on its own, marking an eight-day inflow streak.
In contrast, Grayscale’s GBTC experienced an outflow of $89 million, while ARK 21Shares’ ARKB faced a loss of $74 million. It appears that investors prefer the low fees and extensive reach offered by larger funds.
Market Sentiment Cools
Bitcoin’s upward trend encountered a slight pause afterward, trading around $108,150 at the time of this report. The Crypto Fear & Greed Index dropped from an “Extreme Greed” level of 78 to 66, categorized as “Greed,” suggesting some investors may be taking profits.
Analyst Crypto Dan from CryptoQuant indicated that on May 22, indicators of market overheating remain low compared to prior peaks, suggesting limited profit-taking among short-term investors. He believes this rally is not fueled by high-risk speculation.
Additional Insights
Potential for Record Monthly Inflows
In May, spot Bitcoin ETFs have garnered around $5.40 billion. The previous monthly record was set in November 2024 at $6.50 billion.
With five trading days left in the month, inflows are poised to possibly set a new record. This consistent demand highlights the increasing popularity of ETFs as a preferred method for investors to acquire Bitcoin without needing to manage wallets and private keys.
Interest in spot Bitcoin ETFs is rapidly increasing, as investors favor straightforward, regulated options. Major issuers like BlackRock are well-positioned to dominate this space.
Should market sentiment cool, Bitcoin prices may experience a slight decline. However, strong institutional inflows suggest there may still be room for further gains.
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