Bitcoin ETFs post $2.75B in weekly inflows as price sits above $108K

Spot Bitcoin exchange-traded funds (ETFs) in the US experienced a significant surge in inflows this week, totaling $2.75 billion. This represents a substantial increase compared to the previous week’s $608 million, marking a nearly 4.5-fold jump. The data, sourced from Farside, highlights the robust investor demand for Bitcoin exposure through ETFs.

The final day of the trading week, May 23rd, saw a further $211.7 million in inflows into spot Bitcoin ETFs. However, BlackRock’s IBIT ETF stood out, adding $430.8 million and extending its inflow streak to eight consecutive days. This contrasts with outflows observed in other funds, such as Grayscale’s GBTC (-$89.2 million) and ARK 21Shares’ ARKB (-$73.9 million).

The surge in ETF inflows followed Bitcoin’s surpassing of its previous all-time high of $109,000 on May 21st, a day which also saw $607.1 million in inflows. Bitcoin subsequently reached a new all-time high of $111,970 before retracting slightly. At the time of writing, Bitcoin is trading around $108,000 according to CoinMarketCap. This minor price correction coincided with a dip in overall crypto market sentiment, as reflected by a decrease in the Crypto Fear & Greed Index from 78 (“Extreme Greed”) to 66 (“Greed”).

Spot Bitcoin ETFs are on track to potentially exceed their November 2024 monthly inflow record of $6.49 billion. With approximately $5.39 billion accumulated in May, and five trading days remaining, this record is within reach. Despite the recent all-time highs, analysts remain unconcerned about overheating, citing low funding rates and limited short-term investor profit-taking as indicators of sustained bullish momentum. This positive sentiment suggests a potential for further Bitcoin price increases.