Bitcoin Investment Products Garnered Over $1 Billion in Inflows Last Week
Bitcoin (BTC) investment products saw a significant increase in inflows last week, surpassing $1 billion, according to a report by CoinShares. The total inflows for the year so far reached approximately $14.6 billion, with institutions and long-term investors increasing their exposure to spot Bitcoin 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 a new all-time record of $14.9 billion for 2024 thus 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 a total of $98.43 billion in assets.
The recent surge in buying and price increases is mainly driven by market anticipation of the approval of spot Ethereum ETFs in the United States. Despite Bitcoin underperforming Ether (ETH) following the approval, continued inflows into spot Bitcoin ETFs are seen as significant.
Data from Farside Investors indicates that institutions invested nearly $1.057 billion in spot Bitcoin ETFs between May 20 and May 24. In contrast, Grayscale’s IBIT saw outflows dramatically decrease to just $20.5 million for the week.
Bitcoin Price Remains Range-Bound
Popular analyst Daan Crypto Trades pointed out that when the BTC 8-hour chart is examined over several months, it reveals that price action has been trading within a wide range, stretching from $59,095 to the all-time high above $73,800 on March 14.
Analyst Rekt Capital noted 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.
Independent trader John Albert observed 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 upper limit of $68,000, which is currently acting as immediate resistance.
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, revealed that long-term investors are re-accumulating coins for the first time since December 2023.
Glassnode analysts found that the aggregate supply from long-term holders (LTHs) has decreased by 12,000 BTC to 85,800 BTC per month. This is a significant drop from a 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 accumulation trend.
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.