Recently, Bitcoin ETFs made big news—cumulative net inflows surged to $40.3 billion, breaking historical records! It's important to note that the current market sentiment is still in the 'extreme fear' zone, but these institutions are unfazed, buying more as prices drop, using real money to bolster their faith.
1. Institutions are going crazy: how fierce are giants like BlackRock and Fidelity?
Although $5 billion left in the last two months due to economic concerns, institutions are seizing the opportunity to buy the dip.
Currently, Bitcoin bought through ETFs accounts for 12% of the circulating supply, equivalent to tripling El Salvador's national reserves.
BlackRock's IBIT fund is the most aggressive, attracting $8.7 billion in the first quarter and automatically increasing holdings when it dips to $90,000.
2. Retail investors are holding firm: the fear index has hit rock bottom, but the redemption rate is only 1.2%.
Compared to the 8% redemption wave during the LUNA crash in 2022, retail investors are holding steady this time.
68% of ETF holders have held for over six months, locking in costs in the $28,000 to $32,000 range.
May has only just begun, and already $1.7 billion in new funds have poured in.
3. Hidden risks: the options market is starting to bet on a pullback.
Someone has been buying a large number of put options at $95,000, and hedge funds are preparing for a hedge.
Some small institutions are starting to take profits, but large institutions are still ramping up their positions.
The discount on Grayscale Trust has narrowed from -15% to -8%, indicating that traditional finance is increasingly recognizing Bitcoin.
What is the situation now?
In simple terms: institutions are hoarding Bitcoin as 'digital gold', retail investors are stubbornly holding on without selling, and the ETF is rewriting financial history. Don't be fooled by potential short-term pullbacks; in the long run, this $40.3 billion may just be the beginning—much like how gold entered a ten-year bull market after the launch of the gold ETF in 2004.
What should ordinary people do?
Don't be scared by short-term fluctuations; the overall trend is that institutions are continuously buying.
Those looking to get in can wait for a pullback to build positions gradually.
If you can't hold, at least keep some base holdings; don't wait until there's a surge to regret it.
This time is truly different; Bitcoin is transforming from a 'gambler's toy' into 'institutional-grade assets'. Do you want to miss out or catch this digital gold express train?
