Bitcoin Investment Products Attract Over $1 Billion in Inflows, Year-to-Date Inflows Reach $14.6 Billion
Bitcoin (BTC) investment products received inflows of more than $1 billion last week, bringing the total year-to-date inflows to approximately $14.6 billion, according to a report by CoinShares. This surge in investment can largely be attributed to institutions and long-term investors increasing their exposure to spot Bitcoin exchange-traded funds (ETFs).
For the week ending on May 24, Bitcoin exchange-traded products (ETPs) recorded $1.01 billion in inflows. The total inflows for all cryptocurrency investment products reached $1.05 billion, setting an all-time record of $14.9 billion for 2024 so far.
CoinShares’ “Digital Asset Fund Flows Weekly” report, published on May 28, highlighted a 28% increase in weekly trading volumes, reaching $13.6 billion. Currently, crypto funds manage assets worth $98.43 billion.
The recent surge in buying and price increases is primarily driven by market anticipation of the approval of spot Ethereum ETFs in the United States. Although Bitcoin has underperformed Ether (ETH) post-approval, continued inflows into spot Bitcoin ETFs are seen as significant.
Data from Farside Investors shows that institutions invested nearly $1.057 billion in spot Bitcoin ETFs between May 20 and May 24. Grayscale’s IBIT experienced a dramatic decrease in outflows, with just $20.5 million for the week.
Bitcoin Price Remains Range-bound
Renowned analyst Daan Crypto Trades noted that when looking at the BTC 8-hour chart over several months, it becomes evident that the price action has been trading within a wide range, ranging from $59,095 to the all-time high above $73,800 reached on March 14.
According to Daan Crypto Trades, Bitcoin’s price action in recent months has been within a wide range, stretching from $59,095 to the all-time high above $73,800 reached on March 14. He mentioned on May 27 that minor deviations below this range were quickly recovered.
Analyst Rekt Capital observed that Bitcoin’s recent recovery above $70,000 formed “another local top.” He predicts that Bitcoin will likely continue to consolidate between $60,000 and $70,000, as shown in the chart he posted on May 28.
Independent trader John Albert noted on May 28 that Bitcoin has been trading within a tight range for the past few weeks. He suggested that BTC could experience “further gains” if it breaks above the immediate resistance level of $68,000, which is currently acting as the upper limit.
Long-Term Holders and Whales Accumulate
Institutional and long-term investors are taking advantage of Bitcoin’s low volatility to increase their holdings. Glassnode’s “The Week On-chain” report, published on May 28, indicated that long-term investors are re-accumulating coins for the first time since December 2023.
According to Glassnode analysts, the aggregate supply from long-term holders (LTHs) has decreased by 12,000 BTC to 85,800 BTC per month. This is a significant decrease from the peak of 519,000 BTC per month in late March, indicating a “cooling-off period” and a return to accumulation patterns.
Trader and analyst Ali Martinez also noted increased buying activity by whales in recent days, further supporting the trend of accumulation.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making a decision.