The spot registered on the American market Bitcoin exchange-traded funds (ETFs) saw an impressive total of $2,75 billion in inflows this week, while Bitcoin's price surpassed its all-time January peak of $109.000.
The $2,75 billion inflow exceeds the previous week's $608 million by about 4,5 times, data from Farside showed.
On May 23, the last trading day of the week, spot Bitcoin (BTC) ETFs saw $211,7 million in inflows. However, BlackRock’s IBIT was the only fund to gain on the trading day, adding $430,8 million, extending a streak of eight consecutive days of inflows.
Grayscale's GBTC saw the largest outflow at $89,2 million, followed by ARK 21Shares' ARKB at $73,9 million.
A few days earlier, on May 21, Bitcoin ETFs saw $607,1 million in inflows, the same day that Bitcoin surpassed its previous all-time high of $109.000. The following day, Bitcoin reached a new high of $111.970.
At the time of publication, Bitcoin is trading at $108.141, according to data from CoinMarketCap.
Bitcoin's slight price drop over the past 24 hours was accompanied by a decline in crypto market sentiment, as indicated by the Crypto Fear & Greed Index.
This index, which measures overall sentiment in the crypto market, shows a “Greed” score of 66, down 12 points from the previous day’s “Extreme Score” of 78.
It was recently reported that spot Bitcoin ETFs are on track to potentially surpass their monthly inflow record of $6,49 billion, set in November 2024. So far in May, spot Bitcoin ETFs have collected approximately $5,39 billion, with five trading days remaining.
At the same time, several analysts have suggested that Bitcoin is showing no signs of overheating, despite hitting new all-time highs this week. They point to fundamentals that suggest Bitcoin could continue to rise.
CryptoQuant analyst Crypto Dan noted: “Overheating indicators such as the funding ratio and short-term capital inflow remain low compared to previous peaks, and profit taking by short-term investors is limited.”
Current developments in the Bitcoin market indicate a significant increase in investor confidence, with record inflows into ETFs that have the potential to further strengthen the market. As Bitcoin breaks new all-time records, analytics continue to point to steady growth, with no signs of overheating. This points to a dynamic and potentially promising future for cryptocurrency assets.
How do ETFs affect the Bitcoin price?
ETFs make it easier for traditional investors to invest in Bitcoin, which can help boost demand and therefore drive up the price.
What are the risks of investing in Bitcoin ETFs?
The risks include the volatility of the Bitcoin price itself and the regulatory risks associated with crypto markets.
Why is sentiment in the crypto market important?
Sentiment often determines the investment behavior of both individual and institutional investors, which can lead to fluctuations in cryptocurrency prices.