Bitcoin Investments Climb High Paced by Spot BTC ETF Inflows and Steady Trading
Summary:
Bitcoin investments are showing an upward trend due to increasing inflows into spot BTC exchange-traded funds and good trading conditions. Bitfinex researchers have identified a minimum Bitcoin price point at around $60,000 based on weekly market evaluations. The US spot Bitcoin ETF market has reported consecutive net positive inflows for a week, even as Bitcoin maintained a trading rate above $61,000 amid significant BTC outflows. BlackRock and JPMorgan Chase have reported significant investments in several Bitcoin ETFs.
An upward trend regarding investments in Bitcoin is on the rise due to a surge in inflows into spot BTC exchange-traded funds (ETFs) and favorable trading circumstances. Bitfinex researchers are confident that Bitcoin (BTC) has hit a minimum price limit around the $60,000 threshold after evaluating weekly market trends. The latest Bitfinex Alpha report identified three significant patterns that reinforced this outlook, including consistent high daily closes, huge withdrawals of BTC from cryptocurrency exchanges, and investments into the spot Bitcoin ETF market.
A high withdrawal rate of BTCs was recorded across all crypto exchanges. This movement saw 55,000 BTC being withdrawn on May 15 but without negatively affecting Bitcoin’s low volatility. Unusually large withdrawals often signify a downturn in market sentiment, yet despite the $3.85 billion BTC outflow last week, Bitcoin maintained a trading rate above $61,000.
In addition, the US spot Bitcoin ETF market witnessed positive inflows consistently for a week straight. The Grayscale Bitcoin Trust (GBTC) has typically been the source of major outflows, with losses exceeding $17.6 billion so far. However, over the last week, GBTC reported six days of positive inflows.
The report by Bitfinex found that current ETF buyers have a similar starting point, around $62,000, not considering GBTC. Investors who enjoy variety in their portfolios frequently opt for ETFs due to their cost-effectiveness and tax advantages. More details on Bitcoin ETFs can be found in Cointelegraph's cryptocurrency guide.
BlackRock currently holds the top spot after attracting nearly $16 billion in investments into its iShares Bitcoin Trust (IBIT). It is outpacing the other nine approved Bitcoin ETFs. JPMorgan Chase disclosed investments in Bitcoin ETFs provided by Grayscale, ProShares, Bitwise, BlackRock, and Fidelity, through a May 10 filing with the U.S. Securities and Exchange Commission (SEC). They reported approximately $760,000 in shares of the ProShares Bitcoin Strategy ETF (BITO), IBIT, Fidelity’s Wise Origin Bitcoin Fund (FBTC), GBTC, and the Bitwise Bitcoin ETF.
However, the SEC warned that the information provided by the financial firm should not be assumed as “accurate and complete.”
Published At
5/22/2024 3:09:31 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.