May 23, 2024
Bitcoin (BTC)


After experiencing outflows for four consecutive weeks, US spot Bitcoin exchange-traded funds (ETFs) have marked a notable shift in momentum, witnessing net inflows once again.

According to recent data from CoinShares, digital asset investment products have seen inflows totaling $130 million for the first time in five weeks.

This change suggests renewed investor interest in crypto-focused investment products, particularly in the United States, where most of these inflows, totaling over $130 million, occurred.

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A Mixed Bag Of Global Investment Flows

Grayscale, a major player in the digital asset space, reported a significant decrease in weekly outflows, recording its lowest since January at $171 million. This trend indicates a potential stabilization in the market after a period of volatility and declining interest.

Meanwhile, interaction between US regulators and spot ETF issuers has remained minimal, particularly for spot Ethereum ETF applications.

This lack of engagement has fuelled speculation that approval for these ETFs might not be approaching, as reflected by the amount of outflows from Ethereum-based products. James Butterfill, Head of Research at Coinshares, particularly noted:

Low interaction by the US regulators with ETF issuer applications for a spot Ethereum ETF have increased speculation that the ETF approval is not imminent, this has been reflected in outflows which totalled US$14m last week.

On a global scale, the investment landscape showed mixed signals. After a week of record inflows likely driven by “seed capital” post-Bitcoin ETF launches, as highlighted by Butterfill, Hong Kong saw a significant drop to $19 million in inflows.

Conversely, Switzerland experienced inflows amounting to $14 million. Canada and Germany continued to see outflows, with their year-to-date figures reaching a combined $660 million, indicating sustained bearish sentiment in these markets.

Bitcoin has rebounded with $144 million in inflows, counteracting a generally “weak month.” In contrast, short-Bitcoin exchange-traded products (ETPs) recorded outflows totaling $5.1 million, up to $18 million over the last eight weeks.

These figures highlight the volatile dynamics within the crypto market, with Bitcoin currently showing stronger performance than Ethereum.

Bitcoin And Ethereum Market Performance

Over the past 24 hours, Bitcoin surged nearly 3%, while Ethereum increased by only 1.2%. Despite these gains, both assets are down by 2.3% and 6% over the past week.

Bitcoin (BTC) price chart on TradingView
BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Amidst these market movements, crypto analyst Ali provided insights into Bitcoin’s potential paths. According to Ali, Bitcoin could climb to $76,000 if it reclaims $64,290 as a support level.

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Failing to achieve this could see the flagship crypto drop to support at $51,970, based on Market Value To Realized Value (MVRV) extreme deviation pricing bands, identifying this figure as the all-time mean.

Featured image from Unsplash, Chart from TradingView





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