Massive Bitcoin ETF Inflows Increase BTC Stability

The Bitcoin ecosystem has continued to gain traction. The article indicates that Bitcoin outflows from different trading platforms and inflows into Bitcoin spot ETF have remained persistent.

The report projected a bullish outlook for Bitcoin with a projection of additional inflows in spot Bitcoin ETFs and favorable trading environment.

Bitfinex Report on Bitcoin

The bullish outlook was mentioned in a Bitfinex report. The report has retained $60K as the support level for Bitcoin based on weekly market indicators. The Alpha report also highlighted 3 main factors to back the bullish sentiment.

One of these factors is high dose close, significant Bitcoin supply drain from trading platforms, and massive inflows in Bitcoin ETFs.

A price graph shared by Bitfinex researchers has indicated that Bitcoin supply rapidly depleted out of exchanges at $55,000 on 15th May. The researchers retained that the event did not have a negative impact on Bitcoin price volatility.

Meanwhile, substantial outflow from trading platforms was recounted as a negative development for overall market sentiment. Bitcoin is now trading above $61,000, with the Bitcoin outflow valued at $3.85 million over the last week.

Outstanding Performance of US-based Spot Bitcoin ETFs

The Bitfinex report further indicated that spot Bitcoin ETFs listed in the United States have continued to amass net positive inflows for 7 days. Grayscale Bitcoin Trust (GBTC) has historically reported the largest outflows that have now reached around $17.6 billion as per the latest statistics.

However, for the last week, GBTC recorded a net positive inflow or $0.  The report noticed that the existing ETF shareholders have the same cost basis at $62K sans GBTC.

Traders have opted to purchase Bitcoin spot ETF shares as a way to diversify their investment portfolios. In this manner, the ETF investors were able to avail low cost and tax benefits.

In the same manner, BlackRock reported a net inflow of $16 billion in iShares Bitcoin Trust (IBIT) and remained as the top traded among all spot ETFs issuers. In this manner, the firm outperformed the nine other spot ETFs that were also listed on 11th January 2024.

JP Morgan Chase has reported investing in Bitcoin ETFs issued by Grayscale, Bitwise, BlackRock, ProShares, and Fidelity. A 10th May filing with the Securities and Exchange Commission (SEC) JP Morgan Chase shared that the firm held around $760,000 in Bitcoin spot ETF shares inclusive of BITO, FBTC, GBTC, Bitwise, and IBIT.

The SEC has analyzed that spectators should not make the assumption that all information offered by the financial firm has been accurate and comprehensive.

Bitcoin Funds to Witness $1 Billion BTC Inflows

A new report regarding Bitcoin inflows reveals the latest updates from long-term investors. The report noticed that Bitcoin funds have now amassed a total inflow of $1 billion while the flagship currency retains its ATH price point.

As per data projections from CoinShares aggregate Bitcoin inflows have now reached $14.6 billion on year-to-date metric.

The report attributed the rise in inflows to institutional interest and long-term investors that have increased their exposure in spot Bitcoin ETFs. As of 24th May, Bitcoin ETFs crossed the $1.01 billion inflow mark.

In this way, total inflows for all investment products have reached $1.05 billion which broke the record by reaching $15 billion for 2024 till date for the first time.

CoinShares further noticed that the Digital Asset Fund Flows Weekly report published on 28th May 2024. The report indicated around a 28% increase in weekly trading volumes reaching around $14 billion.

Crypto funds now hold around $98.43 billion in digital asset reserves. The latest uptick in Bitcoin purchases and the price hike is a result of rising probability of ETH ETF approval in the United States. Farside data projections indicated that institutional interest in spot Bitcoin ETFs for 20th and 24th May reached $1.057 billion.

Analyst Daan Crypto Trades observed that the 8-hour chart of Bitcoin magnified over the last months. This means that price action has been oscillating from $59,000 to $73,800 on 14th May, 2024