The US spot Bitcoin ETF market has seen a surge in inflows at the start of this week, reversing a trend of outflows from the previous week. On the first two days alone, investors funneled approximately $170 million into these ETFs, showcasing a robust confidence in these investment channels.
What Happened on May 14?
A pivotal moment came on May 14, when US spot Bitcoin ETFs reported a single-day inflow of $100.5 million. This significant movement was spearheaded by the ARK 21Shares Bitcoin ETF, which received $133.1 million in investments, effectively counterbalancing a $50.9 million outflow from Grayscale’s GBTC. In contrast, BlackRock’s spot Bitcoin ETF IBIT experienced minimal trading activity in the same period.
Despite these inflows, the price of Bitcoin remained relatively stable, trading at $62,148. This occurred while trading volumes decreased by 15% to $24.65 million. Bitcoin reached a 24-hour high of $62,228, in the backdrop of ongoing inflation concerns, highlighted by higher-than-expected US Producer Price Index (PPI) data released on May 14, which dampened expectations of significant Federal Reserve rate cuts.
Is Open Interest Declining?
Market discussions have been sparked by these inflow figures, indicating sustained confidence among participants even amidst inflation worries. However, derivative data shows that the open interest (OI) in Bitcoin futures fell by 1.20% over the last 24 hours, down to 478.38 thousand BTC or $29.62 billion. This reduction in OI suggests a cautious optimism among investors.
Key Takeaways
– ARK 21Shares Bitcoin ETF received $133.1 million in a single day.
– Grayscale’s GBTC saw a $50.9 million outflow.
– Bitcoin trading volume dropped by 15%, but price remained steady.
– Open interest in Bitcoin futures decreased by 1.20%.
These insights provide a concrete view of market movements, revealing investor trends and sentiment.
In conclusion, the positive start to the week for US spot Bitcoin ETFs underscores a renewed investor interest and trust in crypto ETFs. While challenges like inflation and lower trading activities persist, substantial inflows into these ETFs reflect a strong belief in Bitcoin’s long-term investment potential.