Friday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

17 May 2024

Bitcoin ETFs are witnessing a remarkable surge in daily trading volumes, reaching nearly $6 billion as Bitcoin’s price inches closer to $67,000. This resurgence in activity among institutional investors is evident, with almost 1,000 US firms diving into Bitcoin exchange-traded funds (ETFs).

According to data shared by research firm Santiment on X (formerly Twitter) on May 16, daily spot Bitcoin volumes have surpassed $5 billion. This uptick in volume marks a significant return to levels not seen since late March, coinciding with Bitcoin’s previous all-time high of $73,800.

This week, the seven largest US spot ETFs collectively managed a volume of $5.65 billion, the highest since March 24, signaling a renewed interest in Bitcoin investment products. Hedge fund manager Thomas Kralow expressed optimism about this surge in trading activity, seeing it as a positive indicator for the market.

Moreover, May has seen consistent inflows into spot ETFs, suggesting growing confidence among investors. Even the Grayscale Bitcoin Trust (GBTC), known for its substantial outflows, witnessed modest interest recently.

In Q1, data from Form 13F filings revealed that 937 US firms had exposure to Bitcoin ETFs, highlighting a growing institutional appetite compared to the initial stages of gold ETFs.

Looking ahead, trading firm QCP Capital sees several bullish factors that could sustain Bitcoin’s upward trajectory. Factors such as genuine institutional and sovereign adoption, coupled with Bitcoin exiting its halving period, signal a favorable environment for further price appreciation.

Earlier reports suggest increasing bullish sentiment toward BTC/USD, with expectations of new all-time highs and potential targets reaching $95,000. At the time of writing, Bitcoin is attempting to break overhead resistance toward $67,000, following its recent surge to new May highs.