US Bitcoin ETFs See 5th Week of Inflows, but is Demand Slowing?
US Bitcoin exchange-traded funds (ETFs) have experienced five consecutive weeks of positive inflows, totaling over $600 million in the past week alone. This surge follows a weak second quarter, indicating a shift in investor sentiment. A particularly strong day saw inflows exceeding $260 million, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charge at nearly $130 million. Other significant contributors included Fidelity Wise Origin Bitcoin Fund (FBTC) and Ark & 21Shares’ Bitcoin ETF (ARKB). However, this positive trend shows signs of waning. The weekly inflow is decreasing, having peaked in mid-April with over $3 billion, and then falling to $1.8 billion the following week. This decline suggests potential investor fatigue. The price of Bitcoin itself is showing relatively little movement, hovering around $103,362, correlating with the recent slowdown in ETF inflows. While the initial surge in ETF investments had a positive effect on Bitcoin’s price, the current trend indicates a need for caution, as the market appears to be consolidating. Investors should be aware of this potentially slowing demand and the correlation between ETF performance and Bitcoin’s price. The data comes from SoSoValue, which tracks the performance of these ETFs. Specific daily inflows for Friday, May 16th, highlight the strong, yet potentially unsustainable, positive trend. The situation suggests a need for continued monitoring of both ETF inflows and Bitcoin’s price action.
(Source: https://bitcoinist.com/us-bitcoin-etfs-record-5th-week-of-positive-inflows/)
