US Firms Show Rising Interest in Bitcoin ETFs Amid Surging Trading Activity
Summary:
Institutional interest in Bitcoin (BTC) is rising with nearly 1,000 US firms purchasing Bitcoin exchange-traded funds (ETFs). Daily spot Bitcoin volumes have surpassed $5 billion, with the seven top US spot ETFs handling $5.65 billion in volume. Factors such as "genuine institutional and sovereign adoption" could underpin bullish trend continuation. Despite investments bearing risks, there's a positive surge in Bitcoin trading activity.
There has been an increased interest in Bitcoin (BTC) among institutions recently, with almost a thousand US firms acquiring Bitcoin exchange-traded funds (ETFs). As data from research entity, Santiment, revealed on X (used to be Twitter) on May 16, the daily spot volumes of Bitcoin have surpassed $5 billion. The seven largest US spot ETFs collectively handled a volume of $5.65 billion, the highest since March 24, marking an upswing in Bitcoin ETF performance since BTC/USD attained historic highs of $73,800. Hedge fund manager Thomas Kralow responded enthusiastically to the positive trend, noting the surge in trading activity as a good indication for the market. Spot ETFs have been observing a rise in form this May, with positive inflows witnessed daily till May 17. The Grayscale Bitcoin Trust (GBTC), earlier recognized for substantial outflows, also experienced mild interest amounting to $27 million and $4.6 million for May 16 and 17, according to data from UK-based investment firm, Farside. Q1 13F forms reveal that 937 US firms had exposure to Bitcoin ETFs in contrast to only 95 firms that had exposure to gold ETFs during its first quarter of launch. Trading firm QCP Capital noted some factors that could bolster bullish progression, including "genuine institutional and sovereign adoption" and Bitcoin's exit from its halving period. Earlier, predictions for Bitcoin hitting a new high of $95,000 were quite strong. At the time of writing, data from Cointelegraph Markets Pro and TradingView showed BTC working to break through resistance towards $67,000 after hitting new highs in May. Please note, this article isn't an investment advice or recommendation. Investments and trading moves bear risks. Readers are thus advised to conduct their own research before making a decision.
Published At
5/17/2024 11:16:21 AM
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