Strong Bitcoin ETF inflows boost BTC stability, says Bitfinex
A bullish sentiment surrounding Bitcoin investments is emerging, fueled by increasing inflows into spot BTC exchange-traded funds (ETFs) and favorable trading conditions.
Bitfinex researchers believe that Bitcoin ( BTC ) has established a bottom price of around the $60,000 mark based on studying the weekly market conditions.
The recent Bitfinex Alpha report highlighted three key developments that reinstated this belief — consistent high daily closes, massive BTC outflows from crypto exchanges and inflows into the spot Bitcoin ETF market .
Bitcoin exchange outflow across all crypto exchanges. Source: CryptoQuant via BitfinexAs shown above, 55,000 BTC were pulled out from exchanges on May 15, which had no adverse impact on Bitcoin’s ongoing low volatility. While huge outflows from exchanges often serve as negative indicators of market sentiment, Bitcoin continued trading above $61,000 amid last week’s BTC outflow of $3.85 billion.
U.S. spot Bitcoin ETFs daily flows across all providers. Source: FarsideMoreover, the spot Bitcoin ETF market in the United States recorded net positive inflows for seven consecutive days. Grayscale Bitcoin Trust (GBTC) has historically been responsible for most of the outflows, bleeding over $17.6 billion to date.
However, out of the last seven days in question, GBTC recorded net positive (or $0) inflows in six days. “Currently ETF buyers have a similar cost basis, at around $62,000, excluding GBTC,” the Bitfinex report found.
Flexible traders who prefer diversifying their portfolios at a lower cost and tax benefits often invest in ETFs. Read Cointelegraph’s crypto guide to learn more about investing in Bitcoin ETFs .
Related: ARK and 21Shares drop staking plans from Ethereum ETF proposal
BlackRock attracted nearly $16 billion in investments into its iShares Bitcoin Trust (IBIT) and currently tops the leaderboard, outperforming the other nine approved Bitcoin ETFs.
JPMorgan Chase disclosed investments in Bitcoin ETFs offered by Grayscale, ProShares, Bitwise, BlackRock and Fidelity.
In a May 10 filing with the U.S. Securities and Exchange Commission (SEC), JPMorgan Chase reported it held roughly $760,000 worth of shares of the ProShares Bitcoin Strategy ETF (BITO), IBIT, Fidelity’s Wise Origin Bitcoin Fund (FBTC), GBTC and the Bitwise Bitcoin ETF.
The SEC added that observers should not assume that the information provided by the financial firm was “accurate and complete.”
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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