The Spot Bitcoin Exchange-Traded Fund (ETF) has ended a month on US stock markets, boosting Bitcoin optimism. BTC price reaching $50K puts things back on track after months of negative speculation. BTC is rallying due to ETF inflows, an approaching Halving event, and a strong US stock market.
Inflow Of Spot Bitcoin ETF Touches New High!
This week, Spot Bitcoin ETFs saw a massive surge in investor interest, with a net inflow of $493.3 million recorded on Monday. This influx of funds into the cryptocurrency market cheered Bitcoin’s price to break the critical psychological barrier of $50,000. Both factors show that investors are showing greater interest in the SEC-approved regulated assets, making room for wider adoptions in the coming weeks.
Notably, key players like BlackRock IBIT, Fidelity FBTC, and Ark 21Shares Bitcoin ETF had large inflows, showcasing institutional investor interest in Bitcoin. Right now BlackRock’s iShares Bitcoin Trust with $374.7 million, dominates the inflow. The Ark 21Shares Bitcoin ETF raised $40 million, while Fidelity’s Wise Origin Bitcoin Fund raised $151.9 million.
However, amidst the surge in Bitcoin ETF inflows, outflows of $95 million from Grayscale and $20.8 million from the Invesco Galaxy ETF offset these inflows, but net inflows still reached over half a billion dollars. This mixed outlook shows how complicated the market is right now, as some investors are excited about Bitcoin’s possibilities while others are still cautious.
Will BTC Cross $55K?
Despite concerns, economists are cautiously bullish about Bitcoin’s price. After crossing $50,000, many experts expect a move to $55,000. Investor confidence is shown by the Crypto Fear & Greed Index, which reached the “extreme greed” zone at 79.
Giving more bullish vibes CryptoQuant CEO and founder Ki Young Ju predicted that BTC “could reach $112K this year driven by ETF inflows, worst-case $55K”.
However, the rise in institutional investment in Bitcoin ETFs raises concerns about market overheating and corrections. Some derivatives traders expect Bitcoin to reach $70,000 by month’s end. Investors should avoid hasty decisions due to fear of missing out during this unexpected bull rise.
Bitcoin Demand Surges as ETFs Absorb Tradable Supply
In related news, Bitcoin advocate Anthony Pompliano highlighted the surging demand for Bitcoin, stating that it’s 12.5 times higher than the daily production. He emphasized that about 80% of Bitcoin’s total supply has remained untouched for six months, leaving only about $200 billion worth for trading. Pompliano gives the credit to Bitcoin ETFs, which have absorbed 5% of the tradable supply in just 30 days.
Recently, spot Bitcoin ETF trading volume exceeded $1 billion, led by BlackRock’s iShares Bitcoin Trust at $341.2 million. Although this milestone is significant, analyst James Seyffart noted that it’s still below early trading volumes post-ETF debut.