Bitcoin ETFs Experience Record $1 Billion Inflow as Institutions and Long-Term Investors Push Crypto Inflows to $14.6 Billion in 2024
Summary:
Bitcoin investment products experienced an influx of $1 billion last week, bringing the total year-to-date inflows to $14.6 billion. These substantial investments, largely from institutions and long-term investors, were channeled into Bitcoin ETFs. Total inflows for all cryptocurrency products reached $1.05 billion, setting a new record of $14.9 billion so far in 2024. Despite Ethereum outperforming Bitcoin post-approval, continuous inflows into spot Bitcoin ETFs demonstrate their significance. Trends suggest that Bitcoin will likely continue to consolidate between $60,000 and $70,000, and may yield further gains if it surpasses the upper limit. Long-term investors are capitalizing on Bitcoin's low volatility, re-accumulating coins and contributing to a noticeable shift towards accumulation patterns.
Bitcoin (BTC) experienced an extraordinary flow of $1 billion into its related investment products, a new record for the week, bringing the annual inflow to a total of approximately $14.6 billion, as reported by CoinShares. Primarily, this rapid boost in investment is credited to financial institutions and enduring investors expanding their stakes in Bitcoin exchange-traded funds (ETFs).
The week ended on May 24 with Bitcoin’s ETPs witnessing an inflow of $1.01 billion. All cryptocurrency investment products collectively realized an inflow of $1.05 billion, setting a new benchmark of $14.9 billion for 2024 till now.
The "Digital Asset Fund Flows Weekly" report, released by CoinShares on May 28, dedicates a standalone 28% expansion in weekly trading volumes to a record high at $13.6 billion. The assets managed by crypto funds amount to an impressive sum of $98.43 billion.
The buying frenzy and rise in prices are predominantly caused by the market's expectation of the approval of spot Ethereum ETFs in the United States. Even though Ethereum (ETH) outperformed Bitcoin after approval, the continuous inflow into Bitcoin ETFs is significant.
Farside Investors data revealed that between May 20 and May 24, organizations had invested almost $1.057 billion in Bitcoin ETFs. The week saw a dramatic decline in the outflows of Grayscale’s IBIT to a mere $20.5 million.
Analyst Daan Crypto Trades observed that the BTC price has been trading within a range between $59,095 and the all-time high of $73,800 since March 14. He noted that the minor deviations below this range have been instantly regained.
Analyst Rekt Capital stated that Bitcoin's rebound above $70,000 led to "another local top." He predicts Bitcoin will likely continue its consolidation between $60,000 and $70,000.
Trader John Albert pointed out on May 28 that Bitcoin has been showing a restricted fluctuation in its range over the past few weeks. Bitcoin, he suggested, could see "further gains" if it surpasses the upper limit of $68,000, which currently serves as the immediate resistance.
Long-standing investors are taking advantage of Bitcoin's subdued volatility, thereby increasing their holdings. As per the "The Week On-chain" report by Glassnode, published on May 28, long-term investors have started re-accumulating currencies for the first time since December 2023.
Analysts from Glassnode have noticed a downslide in the total supply from long-term holders, dropping by 12,000 BTC to 85,800 BTC per month. This highlights a considerable decrease from a high of 519,000 BTC/month in late March signifying a "cooling-off period" and a favorable shift towards accumulation patterns.
Ali Martinez, a trader and analyst, also marked increased buying activity by big investors in recent days, further strengthening the accumulation trend.
Kindly note, this article doesn’t provide investment advice or recommendations. As with any investment and trading move, risk is inherent, and readers are advised to undertake their own research prior to making any decision.
Published At
5/28/2024 8:22:45 PM
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