Investment inflows into Bitcoin (BTC) products exceeded $1 billion last week, bringing the total inflows for the year to approximately $14.6 billion, according to data from CoinShares. This surge in investment is primarily attributed to institutions and long-term investors increasing their exposure to spot Bitcoin exchange-traded funds (ETFs).
In the week ending May 24, Bitcoin exchange-traded products (ETPs) saw inflows of $1.01 billion. Overall, all cryptocurrency investment products received inflows of $1.05 billion, setting a new record of $14.9 billion for the year so far.
CoinShares’ “Digital Asset Fund Flows Weekly” report, published on May 28, highlighted a 28% increase in weekly trading volumes, reaching $13.6 billion. Currently, crypto funds manage $98.43 billion in assets.
The recent surge in buying and price increases is largely driven by market anticipation of the approval of spot Ethereum ETFs in the United States. Despite Bitcoin underperforming Ether (ETH) after the approval, continued inflows into spot Bitcoin ETFs are seen as significant.
Data from Farside Investors shows that institutions invested nearly $1.057 billion in spot Bitcoin ETFs between May 20 and May 24. Grayscale’s IBIT experienced a dramatic decrease in outflows, totaling only $20.5 million for the week.
The price of Bitcoin remains within a range. Analyst Daan Crypto Trades stated that when looking at the BTC 8-hour chart over several months, it is evident that the price has been trading within a wide range from $59,095 to the all-time high above $73,800 on March 14.
Analyst Rekt Capital observed that Bitcoin’s recent recovery above $70,000 formed “another local top.” He predicts that Bitcoin will likely continue consolidating between $60,000 and $70,000.
Independent trader John Albert noted that Bitcoin has been trading in a tight range for the past few weeks. He suggested that if BTC breaks above the upper limit of $68,000, which is currently acting as immediate resistance, it could see further gains.
Institutional and long-term investors are taking advantage of Bitcoin’s low volatility to increase their holdings. Glassnode’s “The Week On-chain” report, published on May 28, indicated that long-term investors are re-accumulating coins for the first time since December 2023.
According to Glassnode analysts, the aggregate supply from long-term holders (LTHs) has decreased by 12,000 BTC to 85,800 BTC per month. This marks a significant decrease from the peak of 519,000 BTC per month in late March, signaling a “cooling-off period” and a return to accumulation patterns.
Trader and analyst Ali Martinez also noted increased buying activity by whales in recent days, further supporting the accumulation trend.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making a decision.