Originally published on: May 17, 2024
Bitcoin is witnessing a surge in volumes with institutional investors flocking to new investment products, with nearly 1,000 U.S. firms now holding Bitcoin exchange-traded funds (ETFs).
Recent data from research firm Santiment revealed that daily spot Bitcoin volumes have surpassed $5 billion. This surge in activity comes as Bitcoin ETFs have been performing exceptionally well since BTC/USD reached its all-time high of $73,800.
The latest figures show that the seven largest U.S. spot ETFs have collectively recorded $5.65 billion in volume, the highest since March 24. Santiment noted that this uptick in volume signifies a shift from whale accumulation onchain to widespread institutional interest.
Hedge fund manager Thomas Kralow commented on this trend by stating, “This surge in trading activity is a very positive indicator for the market.” He added that the momentum is encouraging for investors.
As May progresses, the spot ETFs continue to attract positive inflows, with even the Grayscale Bitcoin Trust (GBTC) seeing renewed interest. Data from sources like Farside indicate that U.S. firms are increasingly exposed to Bitcoin ETFs, with 937 firms holding positions in Q1.
Looking ahead, trading firm QCP Capital sees several factors aligning for a bullish continuation in BTC price action. They highlight factors such as genuine institutional and sovereign adoption, as well as Bitcoin moving out of its halving period.
Market analysts are predicting new all-time highs for BTC/USD, with some even targeting $95,000 in the near future. Trading data from Cointelegraph Markets Pro and TradingView shows the pair attempting to break through the $67,000 resistance level, after hitting new highs in May.
This article does not provide investment advice. Readers are advised to conduct their own research and consult with financial advisors before making investment decisions. Stay updated with our Markets Outlook newsletter for more insights into investment opportunities and trading strategies. Subscribe today to receive critical updates every Monday.
