TL;DR
- BlackRock’s IBIT Leads: BlackRock’s IBIT spot Bitcoin ETF dominated the market with a $290 million inflow, driving up the total net assets of all spot Bitcoin ETFs by 4.29% to $58.91 billion.
- Bitcoin Price Surge: The influx into Bitcoin ETFs has pushed Bitcoin’s price near its all-time high, with a 17% gain over the last week and a peak of $71,958.
- Ethereum ETF Anticipation: The success of Bitcoin ETFs, with $13.17 billion in net inflows since their US introduction, has turned attention to the potential approval of spot Ethereum ETFs, with hints from the SEC about possible progress.
The spot Bitcoin ETF market has witnessed a remarkable surge, with a $306 million net inflow on Tuesday, May 21. This significant capital injection marks the seventh consecutive day of net inflows, contrasting starkly with Grayscale’s GBTC which recorded a net outflow of $0.00 on the same day.
Bitcoin ETF Flow (US$ million) – 2024-05-21
TOTAL NET FLOW: 305.7
(Provisional data)IBIT: 290
FBTC: 25.8
BITB: -4.2
ARKB: 0
BTCO: 0
EZBC: 0
BRRR: 0
HODL: -5.9
BTCW: 0
GBTC: 0
DEFI: 0For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) May 22, 2024
BlackRock’s Bitcoin ETF Dominates the Market
Leading the charge in this financial renaissance is BlackRock’s IBIT, which alone accounted for $290 million, approximately 95% of the total daily net inflow. This influx has propelled the total net assets value across all listed spot Bitcoin ETF products by 4.29%, reaching a staggering $58.91 billion post-inflow, as reported by Soso Value.
Bitcoin’s Price Reacts Positively to ETF Inflows
The continuous inflow into spot Bitcoin ETFs has had a significant impact on Bitcoin’s price, driving it closer to its all-time high (ATH) set two months prior. Beginning its rally on May 17, Bitcoin saw a daily profit exceeding 7.5%, breaking through the resistance at $67,200 and soaring past $70,000 for the first time in May.
Data from TradingView indicates a 17% gain in Bitcoin over the last week, maintaining bullish momentum. Crypto analysts speculate that a sustained net inflow could further fuel Bitcoin’s uptrend, potentially leading to a new ATH.
Current Trading and Future Prospects
At the time of writing, Bitcoin is trading at around $69,900, following a minor retraction from Tuesday’s high of $71,958. As it inches closer to its ATH, the sustained ETF inflows, spearheaded by BlackRock’s IBIT, highlight the growing confidence in cryptocurrency investments.
The market’s current trajectory suggests that the upcoming weeks could be pivotal in determining whether Bitcoin can maintain its bullish course and set new records.
Ethereum ETF Speculation Adds to the Excitement
Amidst the Bitcoin ETF frenzy, the spotlight also turns to the potential approval of spot Ethereum ETFs. The United States has seen a total of $305.72 million transferred to spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund contributing significantly to the inflows.
In contrast, Grayscale’s transformed Bitcoin Trust did not record any net inflows, while Bitwise Bitcoin ETF and VanEck Bitcoin Trust experienced net outflows.
The overall success of spot Bitcoin ETFs, totaling $13.17 billion in net inflows since their US debut, has shifted market focus to the anticipated approval of spot Ethereum ETFs, with the SEC hinting at possible advancements towards this end.
