This week, the spot Bitcoin ETF saw inflows of $2.75 billion, nearly 4.5 times last week's $608 million. The price broke $109,000, hitting the highest level since January. On May 22, Bitcoin even reached $111,980. With the momentum continuing, investors are pouring in.
Surge in inflows for the spot Bitcoin ETF
According to data from Farside, this week the spot Bitcoin ETF attracted $2.75 billion in funds, a significant increase from $608 million the previous week. This large increase coincided with Bitcoin breaking the historical high of $109,000 in January.
On May 21, investors increased their holdings by $607 million on the same day Bitcoin reached a new high. On May 22, Bitcoin's price soared to $111,980. These trends indicate that capital is chasing new highs.
BlackRock's IBIT leads the capital flow
Reportedly, on May 23, the total inflow into ETFs was only $212 million, but BlackRock's IBIT was the only profitable ETF. It alone brought in $431 million in inflows, making it an eight-day streak.
Meanwhile, Grayscale's GBTC fund saw outflows of $89 million, and ARK 21Shares' ARKB fund lost $74 million. Investors seem to favor the low fees and wide coverage of large funds.
Market sentiment retreats
Since then, Bitcoin's upward momentum has slightly paused. As of the time of this publication, its trading price is close to $108,150. The cryptocurrency fear and greed index has dropped from an 'extreme greed' level of 78 points to 66 points, indicating 'greed.' This decline suggests signs of profit-taking.
CryptoQuant analyst Crypto Dan stated on May 22, 'Overheated indicators like funding rates and short-term capital inflows are still lower compared to previous peaks, and profit-taking among short-term investors is limited.' He believes this rebound is not driven by risky bets.
Record monthly inflows are on the horizon
As of May, the spot Bitcoin ETF has absorbed approximately $5.4 billion in funds. The previous monthly record was in November 2024, when the ETF attracted $6.5 billion in funds.
With only five trading days left in May, the inflow could set a new record. This steady demand highlights that the ETF has become the preferred way for many to hold Bitcoin without the hassle of managing wallets and private keys.
Demand for the spot Bitcoin ETF is rapidly growing. Investors prefer simple, regulated products. Large issuers led by BlackRock are most likely to maintain their leading position.
As for Bitcoin itself, if market sentiment cools, the price may pull back. However, due to strong institutional inflows, many believe Bitcoin still has room to rise.