Bitcoin ETF Inflows Surge Amid Price Record
The Bitcoin (BTC) market continues to heat up, with US-based spot Bitcoin exchange-traded funds (ETFs) experiencing a remarkable influx of capital this week. According to Farside data, these ETFs saw a collective $2.75 billion in inflows, nearly 4.5 times larger than the previous week’s $608 million. This surge comes as Bitcoin surpassed its January all-time high of $109,000, pushing the digital asset into uncharted territory.
BlackRock‘s IBIT Dominates Inflows
The final day of the trading week, May 23, saw $211.7 million in inflows for spot Bitcoin ETFs. However, BlackRock‘s iShares Bitcoin Trust (IBIT) stood out, adding $430.8 million, extending its impressive inflow streak to eight consecutive days. This suggests strong investor confidence in BlackRock‘s ETF, which launched in June 2023 and has quickly become a popular choice for institutional investors.
On the other hand, Grayscale‘s Bitcoin Trust (GBTC) recorded $89.2 million in outflows, followed by ARK 21Shares’ Bitcoin ETF (ARKB) with $73.9 million. This contrasts with the positive sentiment surrounding BlackRock‘s IBIT, possibly reflecting differing investor strategies or preferences.
Market Sentiment Remains Positive Despite Price Dip
Despite a slight price decline over the past 24 hours, the overall crypto market sentiment remains positive, according to the Crypto Fear & Greed Index. The index, which measures market sentiment based on various factors, currently registers a “Greed” score of 66, down from the “Extreme Greed” score of 78 the previous day. This suggests that while some investors may be taking profits, the market is far from turning bearish.
Analysts have pointed to strong fundamentals as a reason for optimism. CryptoQuant analyst Crypto Dan stated on May 22, “Overheating indicators such as the funding rate and short-term capital inflow remain low compared to previous peaks, and profit-taking by short-term investors is limited.” This suggests that the current price surge is driven by strong fundamentals and not simply speculation.
Bitcoin ETFs on Track for Record Month
Cointelegraph previously reported that spot Bitcoin ETFs are on their way to potentially surpassing their monthly inflow record of $6.49 billion from November 2024. With five trading days remaining in May, ETFs have already accumulated approximately $5.39 billion, setting the stage for a potentially record-breaking month. This continued influx of capital suggests that institutional investors remain bullish on Bitcoin’s long-term prospects.
While Bitcoin’s price has experienced a minor correction in recent days, the overall market sentiment remains positive. Strong ETF inflows, coupled with healthy fundamentals, indicate that Bitcoin’s upward trajectory may be far from over.
