The spot Bitcoin ETF market in the US started the week strong with significant inflows after experiencing three consecutive days of outflows the previous week. In the first two days of the week, approximately $170 million flowed into US spot Bitcoin ETFs. This reflects sustained investor confidence in new investment vehicles.
$100.5 Million Inflow on May 14 Alone
One of the significant developments in the cryptocurrency market this year was the green light for spot Bitcoin ETFs in the US. This approval played a crucial role in the gains observed since last year. The strong inflows into spot Bitcoin ETFs since their launch have not only boosted investor confidence but also contributed to stabilizing Bitcoin’s price.
According to Farside Investors, US spot Bitcoin ETFs saw an inflow of $100.5 million on May 14. The ARK 21Shares Bitcoin ETF led the inflows with $133.1 million, helping to offset the $50.9 million outflow from Grayscale’s GBTC. Meanwhile, BlackRock’s spot Bitcoin ETF IBIT saw subdued trading activity during the first two days of the week.
Despite the inflows, Bitcoin’s price remained relatively stable, trading at $62,148, with a slight 15% drop in trading volume to $24.65 million. The largest cryptocurrency reached a high of $62,228 in the last 24 hours. This rise came amid ongoing inflation concerns, as the US Producer Price Index (PPI) data on May 14 indicated higher-than-expected inflation, reducing hopes for multiple Fed rate cuts.
Open Interest Dropped
The inflow data into US spot Bitcoin ETFs sparked discussions in the market, suggesting that confidence among participants remained strong despite high inflation concerns. However, derivative data reveals that the open interest (OI) in Bitcoin futures dropped by 1.20% in the last 24 hours to 478.38 thousand BTC or $29.62 billion. This decline in OI indicates that investors are cautiously optimistic.
Despite everything, the positive start of US spot Bitcoin ETFs to the week highlights the renewed interest and confidence of investors in crypto ETFs. While the market faces challenges like inflation and subdued trading activities, the significant inflows into spot Bitcoin ETFs indicate a strong belief in Bitcoin’s long-term potential as an investment vehicle.
