Tuesday, February 18, 2025

Inflows Surge: Bitcoin Investment Tops $1B as Institutions and Long-Term Holders Accumulate

Article Image

Originally published on: May 28, 2024

Bitcoin investment products saw a massive inflow of over $1 billion last week, bringing the total year-to-date inflows to around $14.6 billion, as revealed by CoinShares. This surge in investment can be mainly credited to institutions and long-term investors ramping up their exposure to spot Bitcoin ETFs.

During the week ending May 24, Bitcoin exchange-traded products (ETPs) recorded significant inflows of $1.01 billion. The total inflows for all cryptocurrency investment products hit $1.05 billion, smashing an all-time record of $14.9 billion for the year so far.

According to CoinShares’ recent “Digital Asset Fund Flows Weekly” report published on May 28, there was a remarkable 28% increase in weekly trading volumes, totaling $13.6 billion. The asset under management for crypto funds has now reached $98.43 billion.

The recent buying frenzy and price surge are primarily fueled by market expectations of the approval of spot Ethereum ETFs in the US. Although Ethereum (ETH) outperformed Bitcoin post-approval, the continuous inflows into spot Bitcoin ETFs hold significant value.

Institutional data from Farside Investors revealed a whopping $1.057 billion investment in spot Bitcoin ETFs between May 20 and May 24. Further, Grayscale’s IBIT reported a dramatic decrease in outflows, falling to just $20.5 million for the week.

Renowned analyst Daan Crypto Trades highlighted that Bitcoin’s price action has been trading within a wide range from $59,095 to the all-time high above $73,800 on the 8-hour chart over several months. Any deviations below this range were quickly corrected, as per Daan Crypto Trades.

Analyst Rekt Capital pointed out that Bitcoin’s recovery above $70,000 indicated “another local top.” He suggested that Bitcoin might continue consolidating between $60,000 and $70,000, as shown in a chart posted on May 28.

Additionally, trader John Albert mentioned that Bitcoin has been trading in a narrow range for the past few weeks. He speculated that BTC could experience “further gains” if it breaks above the immediate resistance at $68,000.

Capitalizing on Bitcoin’s low volatility, institutional and long-term investors are increasing their holdings. Glassnode’s “The Week On-chain” report dated May 28 stated that long-term investors are accumulating coins for the first time since December 2023.

Glassnode analysts reported a substantial drop of 12,000 BTC to 85,800 BTC/month in aggregate supply from long-term holders (LTHs). This decrease from a peak of 519,000 BTC/month in late March signals a “cooling-off period” and a shift back to accumulation patterns.

Furthermore, trader and analyst Ali Martinez also observed increased buying activity by whales, further supporting the accumulation trend.

Remember, this article does not offer investment advice or recommendations. All investment and trading decisions carry risks, and readers should conduct thorough research before making any decisions.

Hot this week

Study Finds 1 in 5 US Voters Engaged with Cryptocurrency

Originally published on: December 18, 2024A recent survey conducted...

Revolutionizing Blockchain Technology: Key Takeaways from G6 Networks AMA

Originally published on: December 18, 2024Gabor Bovai and David...

HashKey Group Unveils Revolutionary Ethereum Layer-2 HashKey Chain Mainnet

Originally published on: December 18, 2024HashKey Group, a pioneering...

Beware of Phishing Scammers: A Warning from Ledger’s Users

Originally published on: December 18, 2024Reports have surfaced indicating...

Avara Founder Supports Removal of Polygon Markets from Aave Platform

Originally published on: December 18, 2024Stani Kulechov, the CEO...

Topics

Study Finds 1 in 5 US Voters Engaged with Cryptocurrency

Originally published on: December 18, 2024A recent survey conducted...

Revolutionizing Blockchain Technology: Key Takeaways from G6 Networks AMA

Originally published on: December 18, 2024Gabor Bovai and David...

HashKey Group Unveils Revolutionary Ethereum Layer-2 HashKey Chain Mainnet

Originally published on: December 18, 2024HashKey Group, a pioneering...

Beware of Phishing Scammers: A Warning from Ledger’s Users

Originally published on: December 18, 2024Reports have surfaced indicating...

Avara Founder Supports Removal of Polygon Markets from Aave Platform

Originally published on: December 18, 2024Stani Kulechov, the CEO...

Crypto Communities Across the US Gear Up for Festive Meetups

Originally published on: December 18, 2024As the holidays approach...

Ethena Labs Joins Forces with Trump-Backed World Liberty Financial for Exciting Partnership

Originally published on: December 18, 2024Ethena Labs, a leading...

Unlock Your Football Skills with Cristiano Ronaldo and Binance Partnership

Originally published on: December 18, 2024Binance and Cristiano Ronaldo...
spot_img

Related Articles

Popular Categories

spot_imgspot_img