The global digital assets market is riding high on bullish sentiment building around Bitcoin investments. However, it is mostly driven by increasing inflows into spot Bitcoin exchange-traded funds (ETFs) and favorable trading conditions.
Bitcoin ETF sees massive outflow
According to reports, the latest Bitfinex Alpha highlighted three key factors supporting this bullish outlook. It stated that the consistently high daily closes, BTC outflows from exchanges, and inflows into the spot Bitcoin ETF market.
It mentioned that on May 15, around 55,000 BTC were withdrawn from exchanges. Meanwhile, this move did not negatively impact Bitcoin’s low volatility. Despite these concerns, large outflows show negative market sentiment. Bitcoin still continued to trade above $61,000. It had a weekly outflow totaling $3.85 billion.
This is important to note that the US spot BTC ETF market saw net positive inflows for 7 consecutive days. Till now, the Grayscale Bitcoin Trust (GBTC) has seen for most outflows. It has lost over $17.6 billion to date.
However, GBTC recorded net positive or zero inflows for six out of seven days during this period. The Bitfinex report noted that ETF buyers hold a similar cost basis of around $62K excluding GBTC.
BlackRock leads the pack with its iShares Bitcoin Trust (IBIT), attracting nearly $16 billion in investments and outperforming the other nine approved Bitcoin ETFs. JPMorgan Chase has disclosed investments in several Bitcoin ETFs, including those offered by Grayscale, ProShares, Bitwise, BlackRock, and Fidelity.
In a recent filing with the U.S. Securities and Exchange Commission (SEC), JPMorgan reported holding approximately $760,000 worth of shares in these ETFs. However, the SEC cautioned that the information provided by JPMorgan should not be assumed to be “accurate and complete.”
ETP gets approval
In another development, WisdomTree received approval from the Financial Conduct Authority (FCA) to list its physically-backed Bitcoin and Ethereum exchange-traded products (ETPs) on the London Stock Exchange.
This approval allows WisdomTree to introduce the WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETPs, targeting the lifting of UK restrictions on May 28. These ETPs, available exclusively to professional investors, have a management expense ratio of 0.35%, making them some of the lowest fee institutional-grade crypto ETPs in Europe.
Bitcoin price is up by 65% on the year to date (YTD) basis. BTC is trading at an average price of $69,642, at the press time. It is closing towards its all time high (ATH) of $73,750.
