Bitcoin ETF Inflows At 7 Times Daily Supply, GBTC Inflows Continue

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As a researcher with a background in finance and experience in following the cryptocurrency market closely, I find the recent developments in the Bitcoin ETF market particularly intriguing. The substantial net inflows into spot Bitcoin ETFs on May 20, totaling over $241 million, are noteworthy, especially considering that this amount outpaced the daily BTC mining rate by several times. This surge in institutional demand for Bitcoin through ETFs could be a strong indicator of the growing confidence and interest in Bitcoin as a legitimate investment asset class.

The Bitcoin ETF market kicked off the week with over $237 million in investments poured into the eleven spot Bitcoin ETFs on May 20th. In addition, the price of Bitcoin surged by approximately 7% within the past day, reaching a new high of $72,000, fueled by optimistic news regarding the approval process for a spot Ethereum ETF.

Bitcoin ETF Inflows Outpace Daily BTC Mined

As an analyst, I’d interpret that data from Farside Investors indicates a significant influx of investments into Bitcoin spot Exchange-Traded Funds (ETFs) amounting to $241 million on May 20th.

Despite the announcement of Michael Sonnensheil’s resignation as Grayscale CEO, GBTC managed to attract $9.35 million in a single day, marking the fifth consecutive day with net inflows.

Furthermore, Ark Invest and 21Shares’ ETF, ARKB, drew in $68.28 million, and BlackRock’s ETF, IBIT, received $66.35 million in investments during the same period.

As an analyst, I’ve observed a striking trend in Bitcoin ETF investments. Daily inflows into spot Bitcoin ETFs have been approximately six to seven times greater than the amount of new Bitcoins mined each day. On May 20, 2024, for instance, these ETFs purchased over 3,400 BTC – a number far surpassing the daily mining supply of around 450 BTC.

The U.S. Bitcoin ETF saw inflows of $235 million on that day, which is equivalent to 3,518 BTC. This figure added to the weekly mining production of 3,150 BTC, as indicated by HODL15Capital’s data. Interestingly, Hong Kong Bitcoin ETFs were the primary buyers during Monday’s trading session.

Hong Kong Bitcoin ETFs were also net buyers on 5/20

— HODL15Capital (@HODL15Capital) May 21, 2024

BTC Price Set for Rally to $100?

As a crypto investor, I’m thrilled to see institutional demand for Bitcoin picking up steam once more. Last week, an impressive $932 million flowed into Bitcoin investment products – a clear sign that large-scale investors are jumping back in with both feet.

Yesterday’s news mentioned that Bitcoin’s price has remained stable between $60,000 and $70,000 for several weeks. This prolonged period of stability gave investors a chance to buy more Bitcoins prior to the anticipated pre-halving price surge.

As a researcher studying cryptocurrency market trends, I’ve examined the data from CryptoCon and found some intriguing projections for Bitcoin’s price. Using Log Regression Curves, known for their accuracy in predicting cycle tops, we can estimate that Bitcoin may hit a layer 7 target of $149,000 by the end of 2024. However, it’s important to note that there is also a more conservative projection, which aligns with the 2013 cycle top, suggesting Bitcoin could reach a layer 6 target of $108,000 by year-end.

#Bitcoin is still on track for a layer 7 price target of 149k by the end of this year.

This is according to the most accurate measure for both 2021 cycle tops, the Log Regression Curves.

The more conservative layer 6 has a target of 108k by that time, which is the layer that…

— CryptoCon (@CryptoCon_) May 20, 2024

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2024-05-21 08:40