Bitcoin ETFs See 450% Weekly Inflow Surge to $2.75 Billion

U.S.-listed spot Bitcoin ETFs experienced a significant surge in net inflows, totaling $2.75 billion over the week ending May 23. This marked a substantial 4.5-fold increase from the $608 million recorded the previous week, indicating a renewed institutional interest in regulated Bitcoin exposure. This influx represents the first uninterrupted streak of daily ETF inflows in four weeks, highlighting a growing confidence in Bitcoin's near-term prospects.

The surge in ETF inflows coincided with Bitcoin's price movements, which saw the cryptocurrency climb above its January all-time high of $109,000 on May 21 and reach a fresh peak of $111,970 on May 22. This price action suggests that ETF inflows are closely tracking broader market momentum, with investors showing increased optimism about Bitcoin's future performance.

On May 23 alone, U.S. spot Bitcoin ETFs recorded $211.7 million in net inflows. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) added $430.8 million, extending its consecutive inflow streak to eight days. In contrast, Grayscale’s Bitcoin Trust (GBTC) saw $89.2 million in outflows, while ARK 21Shares’ ARKB shed $73.9 million. This performance gap underscores a shift towards cheaper fee structures and a broader range of issuer choices within the ETF space.

Through May 23, U.S. spot Bitcoin ETFs have gathered approximately $5.39 billion in monthly inflows. With five trading days remaining in the month, they are on track to surpass November 2024’s record $6.49 billion monthly total. Achieving a new monthly high would further solidify ETFs as a primary channel for institutional capital flowing into Bitcoin.

Bitcoin's price closed at around $108,141 on May 23, down from the $111,970 all-time high reached two days earlier. Over the same period, the Crypto Fear & Greed Index fell to 66 (“Greed”) from 78 (“Extreme Greed”), indicating a mild cooling in market exuberance despite the heavy inflows.

The inflows into Bitcoin ETFs occurred concurrently with weakness in U.S. equities. On May 22, the S&P 500 fell 0.7% amid rising Treasury yields, even as Bitcoin reached its peak. Analysts note that Bitcoin's decoupling from stocks during this period of volatility underscores its maturing status as a portfolio diversifier. This decoupling suggests that investors are increasingly viewing Bitcoin as a distinct asset class, separate from traditional equities.

Analysts also highlight that the continued inflows into Bitcoin ETFs could drive a structural shift in Bitcoin's liquidity profile. As more demand shifts from spot markets to regulated vehicles, the overall liquidity and stability of Bitcoin could improve. Key catalysts for this shift include upcoming U.S. macroeconomic releases, such as the May CPI report and the Federal Reserve’s subsequent policy signals. Additionally, regulatory developments, such as potential SEC approvals for additional Bitcoin ETFs, could further steer fund flows into the cryptocurrency market.