Bitcoin ETFs See $2.75 Billion Inflows This Week As Price Surpasses $109,000

US-based spot Bitcoin exchange-traded funds (ETFs) have recorded a total of $2.75 billion in inflows this week, with Bitcoin surpassing its January all-time high of $109,000. This inflow total was nearly 4.5 times larger than the previous week's $608 million in inflows. On May 23, the final day of the trading week, spot Bitcoin ETFs recorded $211.7 million in inflows. However, BlackRock’s IBIT was the only fund to post gains in the trading day, adding $430.8 million and extending its inflow streak to eight consecutive days. Grayscale’s GBTC led outflows with $89.2 million, followed by ARK 21Shares’ ARKB with $73.9 million. Just two days before, on May 21, the Bitcoin ETFs saw $607.1 million in inflows, the same day Bitcoin surpassed its $109,000 all-time high. The following day, Bitcoin recorded a new all-time high of $111,970. At the time of publication, Bitcoin is trading at $108,141.

Bitcoin’s slight price decline over the past 24 hours came alongside a decline in crypto market sentiment, according to the Crypto Fear & Greed Index. The Index, which measures overall crypto market sentiment, reads a “Greed” score of 66, down 12 points from its “Extreme Score” of 78 the previous day. Spot Bitcoin ETFs are on its way to potentially surpassing its monthly inflow record of $6.49 billion from November 2024. So far in May, spot Bitcoin ETFs have accumulated approximately $5.39 billion, with five trading days remaining in May. Several analysts recently suggested that Bitcoin is not showing any signs of overheating despite reaching new all-time highs this week, pointing to fundamentals suggesting that Bitcoin could rise further. CryptoQuant analyst Crypto Dan said on May 22, “Overheating indicators such as the funding rate and short-term capital inflow remain low compared to previous peaks, and profit-taking by short-term investors is limited.”

The substantial inflows into Bitcoin ETFs indicate a growing interest and investment in Bitcoin, particularly through regulated financial instruments. This trend suggests that institutional investors are increasingly viewing Bitcoin as a viable asset class, despite its volatility. The price of Bitcoin hovering above $108,000 further supports this notion, as it demonstrates the cryptocurrency's resilience and potential for long-term growth. The weekly inflows of $2.75 billion into Bitcoin ETFs are a clear indication of the market's bullish sentiment towards Bitcoin. This influx of capital is likely driven by a combination of factors, including the increasing acceptance of Bitcoin as a store of value, the growing institutional interest in cryptocurrencies, and the regulatory clarity provided by the approval of spot Bitcoin ETFs. The price of Bitcoin sitting above $108,000 further underscores the market's confidence in the cryptocurrency's potential for future growth. As more investors turn to Bitcoin ETFs as a means of gaining exposure to the cryptocurrency, it is likely that we will continue to see significant inflows into these products in the coming weeks and months.