ETFs
Bitcoin Resurgence: Whales Piling Up as ETFs Drive Net Inflows
The feeling around Bitcoin turned decidedly bullish after a surprise rise past $66,000 on Wednesday, now climbing above $67,200. This price increase has sparked renewed interest among large holders.
Notably, addresses holding more than 1,000 BTC have collectively increased their holdings by 250,000 BTC since the launch of Bitcoin ETFs, bringing their total holdings back to pre-FTX collapse levels.
The amount of Bitcoin held by addresses holding more than 1,000 BTC has increased by 250,000 BTC since the ETFs launched and is now close to the levels it was before the FTX collapse. pic.twitter.com/Ge41ICTeEJ
– Intotheblock (@intotheblock) May 18, 2024
A positive development for Bitcoin is the significant drop in transaction fees, reaching their lowest point in three months. This drop retraces much of the rise in fees that followed the launch of Runes, making trades more profitable and potentially encouraging more trading activity.
Bitcoin fees fell to a three-month low this week, retracing most of the rise since Runes launched. pic.twitter.com/608rXGwXbp
– Intotheblock (@intotheblock) May 17, 2024
Bitcoin ETF Net Inflow Remains Positive for Consecutive Days with Massive Figure
On May 17, 2024, Bitcoin ETFs saw a net inflow of $222 million, capping a week of continued positive inflows. This influx contributed to the Bitcoin price’s impressive rebound of 10.3% over the past seven days. Grayscale’s Bitcoin Trust (GBTC) has recorded single-day inflows for three consecutive trading days, reflecting sustained investor confidence.
🚨 $BTC #AND F Net inflow as of May 17, 2024: +$222 million!
• Net inflows were positive throughout this trading week, as the $BTC the price rebounded by 10.3% (7D)!
• #Shades of grey (GBTC) has seen single-day entries for 3 consecutive trading days.
• The highest day… pic.twitter.com/mR0iJw8aUG
– Spot on the channel (@spotonchain) May 18, 2024
Among ETFs, Fidelity’s Bitcoin ETF (FBTC) saw the highest daily inflow at $99.4 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) at $38.1 million. These significant flows from major financial institutions highlight the growing acceptance and widespread adoption of Bitcoin as a legitimate investment asset.
The increase in Bitcoin holdings by whale addresses and positive ETF inflows suggest that the market is preparing for a potentially prolonged bull phase. As Bitcoin continues to gain traction and institutional support, the cryptocurrency market appears poised for continued growth, provided these trends persist. Investors will closely monitor stable market caps and ETF inflows as key indicators of market dynamics and future price action.
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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