Spot Bitcoin ETFs Finally Revive, See $1.4B Weekly Inflows
Bitcoin ETFs are back in the spotlight with a jaw-dropping $1.4 billion inflow in a week. This revival comes as the buzz around a potential spot Ethereum ETF approval continues to grow. Investors are flocking to BTC ETFs, hoping to capitalize on this positive momentum.
Also Read: BTC Could Hit $90K Before a Correction
After a period of inactivity, Bitcoin ETFs saw hundreds of millions in inflow in just 24 hours. This surge is linked to the Spot Ether ETF hype. The SEC’s decision is due on Thursday, and the outlook seems favorable so far.
Blackrock Remains at the Top
As usual, BlackRock’s iShares Bitcoin Trust (IBIT) was the big winner, taking in $290 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $26 million inflows. However, not all ETFs fared well. Data shows that the Bitcoin ETF (BITB) and VanEck Bitcoin Trust (HODL) saw outflows of $4 million and $6 million, respectively.
Meanwhile, the Grayscale Bitcoin Trust (GBTC), which had experienced $72.5 million in net inflows between May 15 and May 20, remained flat. Despite this influx, the ETFs are shrinking from their original levels.
GBTC and IBIT now total $736 million, approximately half their value less than a month ago. Grayscale has appointed Peter Mintzberg as CEO to address these challenges and steer the firm’s flagship Bitcoin fund back on track.
Crypto Market Sees Return of Bulls
Analysts from Standard Chartered predict that a spot Ethereum ETF approval could boost the prices of both BTC and Ether. The recent inflows into Bitcoin ETFs seem to support this theory. The success of these two cryptocurrencies appears to be closely linked, as bullish sentiment around Ethereum spills over into BTC.
Also Read: FCA Greenlights Bitcoin and Ethereum ETPs on London Stock Exchange
Flexible traders looking to diversify their portfolios while enjoying lower costs and tax benefits often turn to ETFs. JPMorgan Chase recently disclosed its investments in BTC ETFs offered by Grayscale, ProShares, Bitwise, BlackRock, and Fidelity.
In a filing with the SEC earlier this month, JPMorgan Chase reported holding around $760,000 worth of shares in the ProShares BTC Strategy ETF (BITO), IBIT, Fidelity’s Wise Origin BTC Fund (FBTC), GBTC, and the Bitwise BTC ETF.
Bitcoin and Ethereum Maintain Rally
Both Bitcoin and Ethereum have managed to stay way above their critical support levels of $70,000 and $3,500, respectively. Given the current market dynamics and buyer enthusiasm indicated by the recovery and subsequent price action, if BTC sustains above the $70,500 mark, it could consolidate and attempt to breach the $71,000 resistance. Successfully closing above this resistance might open the way for further gains toward higher levels, potentially around $73,000 or above.
Successfully closing above that resistance might open the way for further gains toward higher levels, potentially around $73,000 or above. As for Ethereum, if it maintains the recovery momentum and sustains above the $3,760 level, it might attempt to retest higher resistance levels, possibly around $3,820 or even the $3,910 psychological level if the buying continues.
Cryptopolitan reporting by Jai Hamid
