Key Points
- Interest in Bitcoin ETFs has surged, with a net inflow of $48.74 million recorded on 31 May.
- Whale interest in Bitcoin has increased, while retail investors have been selling their holdings.
Bitcoin, despite its recent stagnation around the $67,000 mark, has seen an increase in interest, particularly in its ETFs. Recent data indicates a surge in Bitcoin ETF inflows.
Bitcoin ETF Inflows Increase
On 31 May, Bitcoin spot ETFs attracted net inflows of $48.74 million, marking the 14th consecutive day of net inflows. This suggests a continued interest in Bitcoin through fiat market financial products.
However, these inflows were not evenly distributed. Grayscale’s GBTC saw net outflows of $124 million, while BlackRock’s IBIT and Fidelity’s FBTC experienced inflows of $169 million and $5.9047 million respectively. This suggests a shift in investor preference towards newer Bitcoin spot ETFs.
Rising Interest and Changing Preferences
The rising interest in Bitcoin ETFs suggests that users outside of the primary crypto space are also showing interest in the cryptocurrency. If this trend continues, it could lead to wider adoption of Bitcoin.
At the time of writing, Bitcoin was trading at $67,732.76, with a 1.43% increase in the past 24 hours. The velocity of Bitcoin transfers has slowed, indicating most addresses are holding onto their Bitcoin.
Whale interest in Bitcoin has also increased significantly in recent days, which could potentially drive Bitcoin’s price further up. However, retail interest has declined, suggesting not all holders share the same optimism.
If retail investors continue to sell their holdings, it could create downward pressure on Bitcoin’s price. Miner revenue has also dropped recently, suggesting miners may need to sell their holdings to remain profitable, potentially increasing selling pressure on Bitcoin.
