Key Points
- Increasing inflows into spot Bitcoin ETFs and favorable market conditions are driving bullish sentiment around Bitcoin investments.
- Bitfinex researchers suggest that Bitcoin has established a bottom price around $60,000, supported by strong daily closes, massive BTC outflows from exchanges, and inflows into the Bitcoin ETF market.
A positive outlook for Bitcoin investments is on the rise, spurred by growing inflows into spot Bitcoin ETFs and beneficial trading circumstances.
Researchers at Bitfinex posit that Bitcoin has set a floor price of approximately $60,000, based on an analysis of weekly market conditions. Their recent report underscored three main factors reinforcing this view: consistent high daily closes, large BTC withdrawals from crypto exchanges, and inflows into the spot Bitcoin ETF market.
Bitcoin Exchange Outflows and ETF Inflows
As per the data, 55,000 BTC were withdrawn from exchanges on May 15, which did not negatively affect Bitcoin’s ongoing low volatility. Despite the fact that large outflows from exchanges frequently serve as negative market sentiment indicators, Bitcoin continued to trade above $61,000 amidst a BTC outflow of $3.85 billion last week.
Additionally, the spot Bitcoin ETF market in the United States recorded net positive inflows for seven consecutive days. The Grayscale Bitcoin Trust (GBTC) has historically accounted for the majority of outflows, with over $17.6 billion to date.
However, GBTC reported net positive inflows (or $0) on six of the past seven days. “ETF buyers currently have a similar cost basis, at around $62,000, excluding GBTC,” the Bitfinex report noted.
Investors who seek portfolio diversification at a lower cost and tax benefits often invest in ETFs.
Investments in Bitcoin ETFs
BlackRock has attracted almost $16 billion in investments into its iShares Bitcoin Trust (IBIT), currently leading the pack among the nine approved Bitcoin ETFs.
JPMorgan Chase disclosed investments in Bitcoin ETFs offered by Grayscale, ProShares, Bitwise, BlackRock, and Fidelity. In a May 10 filing with the U.S. Securities and Exchange Commission (SEC), JPMorgan Chase reported holding approximately $760,000 worth of shares in the ProShares Bitcoin Strategy ETF (BITO), IBIT, Fidelity’s Wise Origin Bitcoin Fund (FBTC), GBTC, and the Bitwise Bitcoin ETF.
The SEC added that observers should not assume that the information provided by the financial firm was “accurate and complete.”
In related news, a documentary about the FTX collapse is available on Amazon Prime, with a price tag of $2,500.
