Bitcoin’s price has experienced a significant surge, reaching approximately $67,000. This surge has also led to a notable increase in the volumes of Bitcoin exchange-traded funds (ETFs), which have reached levels not seen since late March. These ETFs are currently being traded with a daily volume of around $6 billion.
One of the key factors contributing to this surge is the inclusion of Bitcoin in new institutional investment products. In the United States alone, approximately 1,000 firms have purchased Bitcoin ETFs. Research firm Santiment has reported daily spot Bitcoin volumes exceeding $5 billion. In a single day, the total volume of seven Bitcoin ETFs reached $5.65 billion, the highest volume recorded since BTC/USD reached its all-time high of $73,800. This increase in volume has led Santiment to conclude that the days of large-scale Bitcoin accumulation solely through on-chain transactions are over.
The positive impact of this surge extends beyond Bitcoin itself and has a broader effect on the market. Hedge fund manager Thomas Kralow views this rise as a positive indicator for the market. Inflows into spot ETFs have continued throughout May, with positive inflows observed every day. Even institutions like Grayscale Bitcoin Trust, which had previously experienced significant outflows, have seen modest interest recently. UK investment firm Farside’s data indicates that Grayscale Bitcoin Trust (GBTC) saw interest totaling $27 million and $4.6 million on May 16 and 17, respectively.
The adoption of Bitcoin ETFs by institutions is further evidenced by Form 13F filings, which show that 937 US firms have invested in Bitcoin ETFs in the first quarter. This number far surpasses the number of firms interested in gold ETFs during their first quarter post-launch.
The price of Bitcoin has surpassed the $65,000 support level and rebounded from purchases made at this level. Trading firm QCP Capital attributes this movement to genuine institutional and sovereign adoption. They also note that Bitcoin has emerged from the halving period and experienced a sharp rebound when its price fell below $60,000.
Disclaimer: The information provided in this article is not intended as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
