Bitcoin Investment Inflows Reach $1 Billion

Last week, Bitcoin investment products saw inflows exceeding $1 billion, bringing the year-to-date total to approximately $14.6 billion, as reported by CoinShares.

This influx is primarily driven by institutions and long-term investors who are increasing their stakes in spot Bitcoin ETFs.

During the week ending on May 24, Bitcoin exchange-traded products (ETPs) attracted $1.01 billion in inflows.

The overall inflows into all cryptocurrency investment products for the week amounted to $1.05 billion, setting a new annual record of $14.9 billion for 2024.

The "Digital Asset Fund Flows Weekly" report by CoinShares, released on May 28, noted a 28% rise in weekly trading volumes, which hit $13.6 billion.

The total assets managed by crypto funds have now reached $98.43 billion.

The market's heightened activity and price gains are largely due to expectations surrounding the approval of spot Ethereum ETFs in the United States.

Despite Bitcoin's lagging performance behind Ether (ETH) following the approval, the continued inflows into spot Bitcoin ETFs are considered noteworthy.

According to data from Farside Investors, between May 20 and May 24, institutions poured nearly $1.057 billion into spot Bitcoin ETFs.

Grayscale’s IBIT experienced a significant reduction in outflows, which fell to just $20.5 million for that week.

Popular analyst Daan Crypto Trades highlighted that a long-term view of the BTC 8-hour chart shows a price movement within a broad range from $59,095 to the March 14 all-time high of over $73,800.

He commented on May 27:

“$BTC Has done nothing but range similar to previous consolidations this cycle.”

Rekt Capital observed that Bitcoin's recent rise above $70,000 has formed "another local top."

He anticipates that Bitcoin will continue to consolidate within the $60,000 to $70,000 range, sharing his insights along with a chart on May 28.

On the same day, independent trader John Albert noted Bitcoin has been trading within a narrow range for the past several weeks.

He suggested that BTC could experience "further gains" if it surpasses the upper boundary of $68,000, which currently serves as immediate resistance.

Institutional and long-term investors are taking advantage of Bitcoin’s low volatility to bolster their investments.

According to Glassnode's "The Week On-chain" report, released on May 28, long-term investors have begun re-accumulating coins for the first time since December 2023.

Glassnode analysts observed a decrease in the aggregate supply held by long-term holders (LTHs), which fell by 12,000 BTC to 85,800 BTC/month.

This represents a substantial drop from a peak of 519,000 BTC/month in late March, indicating a "cooling-off period" and a shift back to accumulation patterns.

Trader and analyst Ali Martinez also noted an uptick in purchasing activities by whales in recent days, further indicating a trend of accumulation.

Sources:

https://cointelegraph.com/news/bitcoin-investment-inflows-hit-1b-as-long-term-holders-accumulate

https://blog.coinshares.com/volume-184-digital-asset-fund-flows-weekly-report-1e6d324b3192

https://x.com/DaanCrypto/status/1795183694149263629

https://x.com/rektcapital/status/1795452766279655889

https://insights.glassnode.com/the-week-onchain-week-22-2024