Bitcoin ETF Inflows Spike Again, BlackRocks Leads Scooping $182 Million

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As an experienced financial analyst, I believe that the recent surge in Bitcoin ETF inflows is a positive sign for the crypto market. With over $2 billion in inflows over the past two weeks and $251 million in net inflows on May 24 alone, it’s clear that institutional investors are showing renewed confidence in Bitcoin.

On Friday, May 24th, the combined investments into Bitcoin spot ETFs marked another significant increase, totaling approximately $251 million in new funds. This represents a noticeable rebound from the potential decrease in Bitcoin ETF inflows observed on Wednesday and Thursday. Currently, Bitcoin is priced at $68,628, representing a 2.31% gain, while its market capitalization stands at an impressive $1.352 trillion.

Bitcoin ETF Inflows On The Rise

Following a sluggish beginning to May, there has been a notable surge in investments into spot Bitcoin ETFs over the past two weeks. The inflows have exceeded $2 billion during this period. This trend is observed as the market mood brightens up with the recent approval of a spot Ethereum ETF on May 23.

Starting from May 24, a net inflow of $252 million has been recorded in Bitcoin spot ETFs, marking the tenth straight day with inflows.

Notable ETFs, including Grayscale’s GBTC with no recorded net inflows or outflows for a day, BlackRock’s IBIT with an inflow of $182 million, and Fidelity’s FBTC receiving $43.7083 million in inflows, have significantly influenced this trend.

I serve as an analyst observing the Bitcoin ETF market’s dynamics. Notably, BlackRock is steadily gaining ground, attracting the majority of inflows, and narrowing the asset difference between itself and Grayscale. As of now, BlackRock’s IBIT ETF holds approximately 284,526 Bitcoins, equivalent to a total assets under management (AUM) of $19.32 billion. In contrast, Grayscale’s GBTC has amassed 289,257 Bitcoins, representing an AUM of around $19.64 billion.

May 24 Update:

Nine ETFs collectively purchased 1,228 Bitcoin for a total investment of approximately $83.4 million. Among them, Blackrock acquired 1,321 Bitcoin worth around $89.7 million, increasing its holdings to 284,526 Bitcoin or roughly $19.32 billion. Grayscale, on the other hand, sold off 243 Bitcoin, decreasing its holdings by approximately $16.5 million, leaving it with a total of 289,257 Bitcoin or about $19.64 billion.

— Lookonchain (@lookonchain) May 24, 2024

As a crypto investor, I’ve noticed that a consistent stream of investments into Bitcoin spot ETFs indicates a strong and ongoing appetite from investors for the cryptocurrency market. Even with the volatile price swings and uncertain market conditions, this trend underscores a solid belief in the long-term potential of Bitcoin.

BTC ETFs to Dominate the Market

The introduction of Bitcoin investment products that are subject to regulation will attract more institutional investors to the cryptocurrency market. Regarding the approval of an Ethereum spot ETF, Geoffrey Kendrick, the head of forex and digital assets research at Standard Chartered Bank, reaffirms his belief in significant inflows towards Bitcoin ETFs. This conviction prompts him to set a year-end price prediction of $150,000 for Bitcoin.

As an analyst, I would emphasize the allure of having a diversified portfolio containing both Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs). Kendrick’s observation underscores this point, adding that the industry has gained additional credibility in light of the SEC’s approval of an ETH ETF.

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2024-05-25 10:40