Bitcoin fund inflows surpass $1 billion as BTC price stays within a range below its all-time highs.
Investments in Bitcoin (BTC) products saw a significant rise last week, with inflows surpassing $1 billion, according to CoinShares. Year-to-date, total inflows have reached around $14.6 billion. This surge is primarily driven by institutional and long-term investors increasing their exposure to spot Bitcoin ETFs.
In the week ending May 24, Bitcoin exchange-traded products (ETPs) attracted $1.01 billion in inflows, contributing to the overall cryptocurrency investment product inflows of $1.05 billion. These figures mark a record-breaking total of $14.9 billion for 2024 thus far.
CoinShares’ “Digital Asset Fund Flows Weekly” report, released on May 28, noted a 28% rise in weekly trading volumes, hitting $13.6 billion. The total assets under management for crypto funds have now reached $98.43 billion.
The recent uptick in purchasing activity and subsequent price increases can be attributed mainly to market expectations surrounding the potential approval of spot Ethereum ETFs in the United States. Despite Bitcoin trailing behind Ether (ETH) post-approval, the sustained inflow into spot Bitcoin ETFs is deemed significant.
According to data from Farside Investors, institutional investments in spot Bitcoin ETFs amounted to nearly $1.057 billion between May 20 and May 24. Grayscale’s IBIT observed a considerable decrease in outflows, dropping to just $20.5 million for the week.
Bitcoin price remains in a range
Popular analyst Daan Crypto Trades has pointed out that when examining Bitcoin’s 8-hour chart over several months, it becomes apparent that the price action has largely been confined within a broad range, spanning from $59,095 to the all-time high above $73,800 recorded on March 14. Additionally, Daan Crypto Trades notes that any minor excursions below this range have been swiftly reclaimed by the market.
Analyst Rekt Capital noted that Bitcoin’s recent bounce back above $70,000 has established what he terms as “another local peak.” He anticipates that Bitcoin is poised to maintain a consolidating pattern within the range of $60,000 to $70,000. This observation was shared alongside a chart on May 28th.
On May 28, independent trader John Albert observed that Bitcoin has maintained a narrow trading range over the past few weeks. He proposed that if BTC surpasses the immediate resistance level of $68,000, it could potentially experience “additional gains.”
Long-term holders and Whales Accumulate
Institutional and long-term investors are leveraging Bitcoin’s subdued volatility to bolster their holdings. According to Glassnode’s “The Week On-chain” report released on May 28, there’s evidence of long-term investors beginning to re-acquire coins, marking the first such activity since December 2023.
Analysts at Glassnode observed a notable decline in the aggregate supply from long-term holders (LTHs), with a decrease of 12,000 BTC to 85,800 BTC per month. This contrasts sharply with the peak of 519,000 BTC per month recorded in late March, indicating a shift towards a “cooling-off period” and a resurgence in accumulation behaviors.
Trader and analyst Ali Martinez also observed heightened purchasing activity from whales in recent days, further bolstering the trend of accumulation.
Read More: An analyst reports that US Bitcoin mining consumed $2.7 billion worth of electricity in 2024
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