Strong Bitcoin ETF inflows boost BTC stability, says Bitfinex

cyptouser2 months agoCryptocurrencies News58
55966e89>

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 Bitfinex

As 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: Farside

Moreover, 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.”

Magazine: The $2,500 doco about FTX collapse on Amazon Prime… with help from mom

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

2nd highest weekly close ever — 5 things to know in Bitcoin this week

2nd highest weekly close ever — 5 things to know in Bitcoin this week

55966e89˃Bitcoin (BTC) starts a new week battling age-old resistance after June began with surprise...

Uniswap Foundation postpones vote on incentives

Uniswap Foundation postpones vote on incentives

55966e89˃The Uniswap Foundation — the organization overseeing the decentralized exchange Uniswap — h...

MultiversX and Cornell launch sponsored blockchain education program

MultiversX and Cornell launch sponsored blockchain education program

55966e89˃Distributed blockchain network MultiversX recently announced the launch of a sponsored bloc...

Vitalik Buterin says Ethereum layer-2 solutions will become more diverse and specialized

The Ethereum layer-2 ecosystem continues to expand and diversify, according to Ethereum co-founder V...

Babylon secures $70 million to turn Bitcoin into PoS security backbone

Babylon, the Bitcoin staking protocol, has successfully closed a $70 million funding round led by Pa...

MATIC outperforms market as Polygon ID release 5 enhances security and expands ecosystem capabilities

The Polygon network’s digital identity protocol, Polygon ID Release 5, has officially launched...