Bitcoin ETFs See 450% Inflow Surge as Price Hits $111,970

Spot Bitcoin ETFs have experienced a significant surge in demand, with inflows reaching $2.75 billion this week. This figure represents a nearly 4.5x increase over the previous week’s $608 million inflow. The surge in demand comes as Bitcoin broke past its January all-time high of $109,000 and touched a new peak of $111,970.

On May 23 alone, ETFs attracted $211.7 million in net inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the pack by adding $430.8 million—marking its eighth straight day of net gains. While BlackRock continues to dominate ETF inflows, Grayscale’s GBTC shed $89.2 million, followed by ARK 21Shares’ ARKB with $73.9 million in outflows. This spike in inflows comes amid heightened Bitcoin activity. On May 21, the same day Bitcoin crossed $109,000, ETFs saw $607.1 million in inflows. The upward momentum pushed Bitcoin to a new all-time high the next day, though the price has since experienced a mild pullback.

The Crypto Fear & Greed Index, which tracks overall sentiment, dropped from an “Extreme Greed” reading of 78 to 66 in the past 24 hours, reflecting more cautious market behavior despite record prices. Notably, May could break the monthly ETF inflow record of $6.49 billion set in November 2024. With five trading days left, spot Bitcoin ETFs have already drawn $5.39 billion. Analysts remain optimistic. On-chain data suggests the rally is not yet overheated. CryptoQuant’s Crypto Dan noted that funding rates and short-term capital inflows remain low, and profit-taking from short-term investors is minimal — signs that BTC’s upward trajectory may have more room to run.

The current bull market is being driven primarily by institutional capital rather than the wave of individual buyers seen in past cycles. This rally is unfolding largely without retail participation. Instead of the usual buzz and euphoria, there’s a noticeable absence of retail momentum. There has been a clear shift in Bitcoin’s market dynamics. In previous bull runs, individual investors often led the charge, with social media hype and FOMO fueling rapid price gains. But this time, large institutions, motivated by Bitcoin’s role as a hedge against inflation, are steering the market. We’re witnessing a steady and quiet transfer of Bitcoin from early adopters, miners, and exchanges to a new class of investors, primarily corporations. Among those leading the institutional push is Strategy, the largest corporate holder of Bitcoin. According to Bitcoin Treasuries data, 204 institutions currently hold BTC, with more than half being public companies. In just the last month, 11 new firms added Bitcoin to their balance sheets. Strategy recently announced a plan to raise $2.1 billion through Series A Perpetual Preferred Stock, with proceeds potentially going toward further BTC acquisitions.