Bitcoin Reaches $70,000 Again Amid Continuous Inflows into Spot ETFs
Bitcoin spot Exchange-Traded Funds (ETFs) recorded a significant inflow of $105 million on June 3, marking the 15th consecutive day of positive net inflows. This continuous influx of funds highlights the growing investor interest and confidence in Bitcoin as a valuable asset.
Key ETF Inflows
Among the prominent Bitcoin spot ETFs, Fidelity ETF (FBTC) saw a remarkable inflow of $77.05 million. Bitwise ETF (BITB) also attracted a substantial $14.31 million. In contrast, BlackRock’s iShares Bitcoin Trust reported zero inflows and outflows during this period. Similarly, Grayscale’s Bitcoin Trust ETF (GBTC) observed no net change, with daily net outflows recorded at $0.00.
Bitcoin’s Price Movement
Bitcoin briefly surged past the $70,000 mark on Monday, a milestone not reached in over a week. However, the price soon retreated to its usual trading range, continuing to move sideways. As of the time of writing, Bitcoin is trading around $69,000, reflecting a 2% increase over the past 24 hours. Ethereum (ETH), on the other hand, remains relatively stable, hovering just below $3,800.
Since Bitcoin hit its all-time high of $73,000 in March, both Bitcoin and the broader cryptocurrency market have been in a consolidation phase for over two months. Analysts from Bitfinex suggest that this corrective phase might be nearing its end. They highlight that long-term holders, who had been selling off Bitcoin since its peak, have begun reaccumulating the cryptocurrency for the first time since December 2023. Additionally, there has been a noticeable increase in new accumulation addresses for both Bitcoin and Ethereum over the past month.
Positive Investor Sentiment
Despite the recent price stabilization, the growing number of accumulation addresses indicates a rising bullish sentiment among investors. Bitfinex’s analysis, supported by data from CryptoQuant, points to an optimistic outlook for the cryptocurrency market.
Virtual Asset Products Attract Significant Inflows
Last week, digital asset investment products saw an inflow of $185 million, marking the fourth consecutive week of positive investment trends. Throughout May, these products attracted a total of $2 billion in inflows, pushing the year-to-date total above $15 billion—a record high. Bitcoin ETFs have become one of the most successful ETF categories, with total assets reaching $58.5 billion. These funds have experienced significant growth, benefiting from Bitcoin’s quadrupling in value since early last year.
Regulatory and Market Challenges
Despite the profitability of Bitcoin ETFs, critics question the suitability of volatile digital assets for widespread adoption, even within the ETF framework. Various countries, including Singapore and China, have imposed restrictions or outright bans on cryptocurrencies, highlighting the regulatory challenges these investment tools face.
Expanding Cryptocurrency ETF Market
The positive momentum for cryptocurrency ETFs extends beyond Bitcoin. Last week, the SEC indicated a willingness to approve Ethereum ETFs, the second-largest cryptocurrency by market capitalization. On May 23, the SEC officially approved 19b-4 applications from several major issuers, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, for launching spot Ethereum ETFs. Notably, several ETF issuers removed staking from their final amendments.
According to Kaiko, an analytics firm, Grayscale’s forthcoming spot Ethereum ETF may face significant fund outflows, averaging around $110 million daily.
