Bitcoin exchange-traded funds (ETFs) experienced a significant influx of $222 million on May 17, 2024, indicating a positive trend for the entire trading week. This surge in investment comes as Bitcoin’s price rebounded by 10.3% over the past seven days.
Grayscale Bitcoin Trust (GBTC) has been particularly successful, attracting daily investments for three consecutive trading days. However, Fidelity’s Bitcoin ETF (FBTC) led the pack with the highest single-day inflow of $99.4 million, closely followed by BlackRock’s Bitcoin ETF (IBIT) with $38.1 million.
Market sentiment surrounding Bitcoin ETFs has been analyzed by Bloomberg analyst, Eric Balchunas. He pointed out a recurring pattern of pessimistic predictions just before significant approvals, similar to the scenario preceding the approval of the spot Bitcoin ETF. Balchunas suggested that these predictions serve as risk-free public relations moves, allowing commentators to gain attention without consequences if proven wrong.
The consistent net inflows and significant single-day inflows demonstrate strong investor confidence in Bitcoin ETFs. The positive price movement of Bitcoin further reinforces this sentiment and paints a positive market outlook for the cryptocurrency and its associated investment vehicles.