Bitcoin ETFs Surge 50% to $133 Billion on Institutional Demand

Bitcoin exchange-traded funds (ETFs) have reached a new milestone with assets under management (AUM) surpassing $133 billion, fueled by massive inflows and surging institutional demand. In the past five weeks alone, Bitcoin spot ETFs recorded net inflows of $6.63 billion, with $667.40 million entering the funds on May 19 alone. This marks one of the most aggressive periods of accumulation since ETFs were introduced, hinting at strong confidence from institutional players.

The spike in inflows comes amid rising technical optimism. Analysts have pointed to a looming “golden cross,” a bullish signal that occurs when the 50-day simple moving average crosses above the 200-day average. Historically, this pattern has preceded long-term rallies in Bitcoin’s price. Despite minor price pullbacks, market sentiment remains notably bullish. In fact, even on days of correction, inflows persisted, revealing that investors are buying the dip rather than retreating. Notably, the continued inflows have coincided with a broader shift in investor sentiment, as reflected by the Crypto Fear and Greed Index moving deeper into the “greed” zone. Analysts view this convergence of sentiment and technical patterns as a foundation for Bitcoin’s next rally, possibly pushing it toward a fresh all-time high.

While Bitcoin shines in the ETF arena, Ethereum faced renewed scrutiny following a significant whale movement linked to one of its cofounders. Jeffrey Wilcke, a lesser-known but foundational figure in Ethereum’s early development, transferred 105,732 ETH (worth approximately $262 million) to Kraken, a move that immediately raised eyebrows in the crypto community. Such massive transfers to centralised exchanges often suggest potential sell-offs, especially when conducted through platforms like Kraken, which are known for high-volume liquidations. The timing of the move added to the uncertainty, occurring just as Ethereum was rebounding 1.56% to around $2,490 after dipping to $2,452. While it remains unclear whether Wilcke’s wallet had been dormant before this transfer, the sudden activity has unsettled some traders. Ethereum has struggled to breach the $2,500 resistance level, and this movement by a known insider has added to market jitters. Adding to the unease, other high-volume ETH transfers linked to notable entities such as Justin Sun and the Ethereum Foundation have taken place in recent weeks. Moreover, the optimism that initially surrounded the Pectra upgrade is beginning to wane. Reports of a possible bug in Ethereum Improvement Proposal 7702 (EIP-7702) have cast doubts on the upgrade’s long-term stability. As a result, market watchers are urging caution, especially if Wilcke’s transaction signals broader intentions within Ethereum’s founding circles.

In a surprising political twist, Argentina’s President Javier Milei has ordered the disbandment of the special task force investigating the high-profile LIBRA scandal. The probe had been initiated to examine alleged financial mismanagement and regulatory breaches tied to the LIBRA crypto project, which had drawn significant criticism from global financial watchdogs. Milei’s decision to halt the investigation comes amid sweeping reforms aimed at reducing governmental oversight in financial markets. Supporters argue that the move reflects a desire to attract innovation and promote cryptocurrency adoption within Argentina. However, critics see it as a political manoeuvre that undermines transparency and accountability, particularly in light of LIBRA’s controversial history. Although the official statement cited “budgetary constraints and institutional restructuring” as the rationale behind the move, sources within the government suggested that the order may have been influenced by external lobbying from crypto-linked interests. This development effectively ends one of the most closely-watched regulatory inquiries in Latin America, leaving questions about the future of crypto oversight in the region.

From historic ETF inflows and whale-sized Ethereum transfers to sweeping political decisions in South America, the cryptocurrency space remains as dynamic as ever. Bitcoin appears to be entering a bullish phase driven by institutional confidence, while Ethereum navigates uncertainty amid high-stakes movements by key players. Meanwhile, the regulatory developments, such as Argentina’s pivot on LIBRA, continue to shape the global crypto narrative.