CoinShares reported that Bitcoin investment products experienced inflows exceeding $1 billion last week, pushing yearly inflows to around $14.6 billion. This surge is primarily driven by institutional and long-term investors increasing their investments in spot Bitcoin ETF funds. The week ending May 24 saw notable inflows of $1.01 billion into Bitcoin exchange-traded products.
What Drives the Increased Interest?
Total inflows into all cryptocurrency investment products reached $1.05 billion, breaking the all-time record of $14.9 billion for 2024 so far. CoinShares’ Weekly Crypto Asset Fund Flows report, released on May 28, highlighted a 28% rise in weekly trading volumes, hitting $13.6 billion. Currently, crypto funds manage assets worth $98.43 billion.
The recent surge in buying and price increases is mainly due to market expectations that spot Ethereum ETF funds will gain approval in the US. Although Ethereum underperformed post-approval, the continued inflows into spot Bitcoin ETF funds remain significant.
How Much Are Institutions Investing?
Data from Farside Investors shows that institutions poured around $1.057 billion into spot Bitcoin ETF funds between May 20 and May 24. Grayscale’s IBIT witnessed outflows drop dramatically to just $20.5 million per week. This data indicates a strong institutional interest and confidence in Bitcoin as an investment asset.
Key Insights for Investors
– Institutional investors are significantly increasing their Bitcoin ETF fund investments.
– The approval of spot Ethereum ETF funds in the US is positively influencing Bitcoin ETF inflows.
– Market trading volumes in cryptocurrency funds have seen a 28% rise recently.
– Grayscale’s IBIT outflows have dramatically reduced, signaling a potential shift in market dynamics.
What to Expect for Bitcoin?
Popular analyst Daan Crypto Trades highlighted that Bitcoin’s 8-hour chart shows price action ranging from $59,095 to an all-time high of $73,800 on March 14. He noted that minor deviations below this range were quickly corrected, indicating a consolidated movement similar to previous cycles.
Analyst Rekt Capital observed Bitcoin’s recent climb above $70,000, marking a new local peak. He predicts that Bitcoin will continue to consolidate between $60,000 and $70,000, suggesting a stable yet range-bound movement in the near future.