This week we have spot Bitcoin ETFs recorded a notable inflow of $2,75 billion, nearly 4,5 times the previous week’s $608 million. This significant increase was driven by the explosive growth in Bitcoin’s price, which breached $109.000, a level not seen since January. On May 22, Bitcoin even peaked at $111.980 as investors scrambled to get in on the upward movement.
According to data from Farside, spot Bitcoin ETFs attracted $2,75 billion this week, up sharply from $608 million the previous week. The big jump came after Bitcoin surpassed its all-time high in January at $109.000. On May 21, investors added $607 million, the same day Bitcoin reached its new peak. The surge to $111.980 on May 22 illustrates the strong demand for the cryptocurrency.
ETF inflows reportedly totaled $23 million on May 212, with BlackRock’s IBIT the only positive performer with $431 million inflows. This marked a streak of eight consecutive days of inflows for this ETF. Meanwhile, Grayscale’s GBTC saw an exodus of $89 million, and ARK 21Shares ARKB lost $74 million. This suggests that investors are favoring the lower costs and accessibility of the largest funds.
After the rise, the Bitcoin price seems to be stabilizing somewhat, with a current value around $108.150. The Crypto Fear & Greed Index dropped from an “Extreme Greed” level of 78 to 66, indicating a state of “Greed”. This points to possible profit-taking by traders.
According to crypto analyst Crypto Dan, there are indications of “overheating” on May 22, such as the funding rate and short-term capital inflows, which remain low compared to previous peaks. He argues that the recent rally is not based on risky bets by short-term investors.
So far in May, spot Bitcoin ETFs have attracted approximately $5,40 billion, approaching the previous monthly record of $6,50 billion, set in November 2024. With five trading days left in May, inflows could set a new record. This steady demand demonstrates the ease with which ETFs are being used by investors looking to own Bitcoin without the complexities of wallets and private keys.
Demand for spot Bitcoin ETFs has been growing rapidly. Investors prefer simple, regulated products, and the largest providers, led by BlackRock, are most likely to remain top performers. As for Bitcoin itself, if sentiment cools, the price could pull back a bit, but with strong institutional inflows, many analysts believe there is still room for further upside.
The recent developments surrounding Bitcoin ETFs illustrate not only a growing interest in cryptocurrency, but also the evolution of investment strategies and preferences. This shift UNDERLINES the potential for further growth within the sector and provides investors with tools to make informed decisions.
What is a Spot Bitcoin ETF?
A Spot Bitcoin ETF is an exchange-traded fund that invests directly in Bitcoin, giving investors easy access to the cryptocurrency without having to buy and store it themselves.
Why Have Inflows Into Spot Bitcoin ETFs Rised Recently?
The increase can be attributed to the recent price rise of Bitcoin, combined with a growing demand for regulated investment products that make it easier for traditional investors to invest in cryptocurrency.
What are the implications of the drop in the Crypto Fear & Greed Index?
A decline in the index often indicates a shift toward profit-taking and can mean that investors are less optimistic about future price movements, potentially increasing market volatility.