US Bitcoin ETFs near record month after $1.5B inflows in 2 days

Spot Bitcoin exchange-traded funds (ETFs) in the United States are experiencing record-breaking inflows, significantly contributing to Bitcoin’s surge to new all-time highs. Data from Sosovalue reveals that US-listed spot Bitcoin ETFs received over $1.5 billion in combined inflows during a two-day period (May 21st and 22nd), with $608 million and $934 million respectively. A continuation of this inflow rate would result in a monthly total exceeding $6.68 billion, surpassing the previous record of $6.49 billion set in November 2024.

This surge in ETF investment fueled Bitcoin’s rise to a new all-time high of $112,000 on May 22nd, before a slight retracement to above $110,700 on May 23rd. This represents a more than 19% increase over the preceding week. The substantial ETF inflows and Bitcoin’s price appreciation strongly indicate increasing institutional demand and realized profits without significant sell pressure, according to Nexo dispatch editor Stella Zlatareva. She highlights the convergence of institutional inflows, corporate balance sheet adjustments, and macroeconomic factors as signaling Bitcoin’s transition from an alternative asset to a benchmark asset.

The recent spike in ETF demand follows a $1 billion Bitcoin withdrawal from Coinbase on May 9th, a move interpreted by analysts as further evidence of growing institutional interest. This institutional investment is projected to propel Bitcoin’s price even higher. André Dragosch, Bitwise’s head of European research, anticipates Bitcoin surpassing $200,000 by the end of 2025, barring significant government intervention. He further suggests that government involvement could potentially push the price closer to $500,000. Bitwise’s long-term prediction projects a $1 million Bitcoin price by 2029, based on the expectation that Bitcoin’s market capitalization will eventually surpass that of gold. However, it is important to note that gold’s current market capitalization ($22.3 trillion) is still significantly larger than Bitcoin’s ($2.2 trillion), currently placing Bitcoin as the fifth-largest asset globally.