Bitcoin spot exchange-traded funds (ETFs) have seen a net inflow of $105 million recorded on June 3, with Fidelity ETF FBTC attracting a substantial inflow of $77.0482 million and Bitwise ETF BITB attracting $14.3145 million. Meanwhile, BlackRock’s iShares Bitcoin Trust reported zero inflows and outflows, and Grayscale’s Bitcoin Trust ETF (GBTC) observed a net outflow of $0.00 per day. Bitcoin briefly surpassed the $70,000 mark on Monday before retracing to around $69,000, and Ethereum’s ether remained relatively unchanged. The cryptocurrency market has been in a consolidation phase for over two months, with analysts suggesting that this correction phase may be nearing its end as long-term holders start accumulating Bitcoin again.
Digital asset investment products have seen $185 million in inflows last week, marking the fourth consecutive week of positive investment trends and bringing year-to-date inflows past the $15 billion mark. Bitcoin ETFs have amassed a total of $58.5 billion in assets and have experienced remarkable growth. While Bitcoin ETFs have proven to be successful investments, there are concerns about the suitability of volatile digital assets for widespread adoption, particularly within the structure of ETFs. Some countries, including Singapore and China, have implemented restrictions or bans on investor access to cryptocurrencies, highlighting regulatory challenges faced by these investment vehicles. The positive momentum for cryptocurrency ETFs extends beyond Bitcoin, with the SEC signaling its willingness to allow ETFs for Ether, the second-largest cryptocurrency by market value.
The sustained net inflows into Bitcoin spot ETFs come as Bitcoin briefly surpassed the $70,000 mark on Monday, marking the first time in a week that it reached such heights. However, the price retraced to its familiar trading range, continuing its sideways movement. At the time of writing, Bitcoin was trading at around $69,000, reflecting a 2% increase over the past 24 hours. Ethereum’s ether remained relatively unchanged, hovering just below $3,800. Blockchain data indicates that long-term holders have started accumulating Bitcoin again for the first time since December 2023, and there has been a growing number of new accumulation addresses for both Bitcoin and Ethereum over the past month. This trend indicates increasing bullish sentiment among investors despite the price stability observed in recent times.
Analysts from Bitfinex suggest that the correction phase of Bitcoin since reaching its all-time high above $73,000 in March seems to be approaching its end. Long-term holders selling off their Bitcoin holdings was a significant factor in the correction from all-time highs, but data indicates that these holders have started accumulating Bitcoin again. There has also been a growing number of new accumulation addresses for both Bitcoin and Ethereum over the past month, indicating increasing bullish sentiment among investors. The analysis from Bitfinex refers to data from CryptoQuant to support these observations. Digital asset investment products saw $185 million in inflows last week, marking the fourth consecutive week of positive investment trends and continuing the upward momentum for Bitcoin ETFs, which have amassed a total of $58.5 billion in assets.
Despite the success of Bitcoin ETFs, critics raise concerns about the suitability of volatile digital assets for widespread adoption, even within the structure of ETFs. Some countries, including Singapore and China, have implemented restrictions or outright bans on investor access to cryptocurrencies, highlighting the regulatory challenges faced by these investment vehicles. The positive momentum for cryptocurrency ETFs extends beyond Bitcoin, with the SEC signaling its willingness to allow ETFs for Ether, the second-largest cryptocurrency by market value. On May 23, the SEC officially approved 19b-4 applications from various issuers for issuing spot Ether ETFs. Analysis firm Kaiko has suggested that Grayscale’s forthcoming spot Ethereum ETF may face significant outflows, potentially averaging around $110 million per day. Overall, the cryptocurrency market continues to show signs of growth and increasing investor interest, despite regulatory challenges and concerns about volatility.
