Bitcoin (BTC) is experiencing a surge in volumes for its new institutional investment products, as nearly 1,000 US firms have purchased Bitcoin exchange-traded funds (ETFs). According to data from research firm Santiment, daily spot Bitcoin volumes have exceeded $5 billion. This week, the seven largest US spot ETFs recorded a volume of $5.65 billion, the highest since March 24. Santiment stated that the days of whales exclusively accumulating on-chain are over, as volume is picking up significant momentum. Hedge fund manager Thomas Kralow expressed optimism about the surge in trading activity, calling it a positive indicator for the market.
The spot ETFs have been performing well in May, with positive inflows every day so far. Even the Grayscale Bitcoin Trust (GBTC), which previously experienced significant outflows, saw modest interest with inflows of $27 million and $4.6 million on May 16 and 17 respectively. Additionally, Q1 13F filings show that 937 US firms had exposure to Bitcoin ETFs, compared to just 95 firms for gold ETFs in their first quarter after launch.
As for BTC price action, trading firm QCP Capital believes that several factors are aligning to support a bullish continuation. These factors include genuine institutional and sovereign adoption, as well as Bitcoin exiting its halving period. QCP noted that Bitcoin has experienced multiple sharp v-shaped recoveries whenever it dipped below $60,000, making it a buy-the-dip zone.
There is increasing bullish conviction surrounding BTC/USD, with some predicting new all-time highs and even a price of $95,000. At the time of writing, BTC/USD is attempting to break overhead resistance at around $67,000, following new May highs.
Note: This article does not provide investment advice. Readers should conduct their own research and exercise caution when making investment decisions.