The recent surge in institutional capital flowing into U.S. spot Bitcoin ETFs has been a major driving force behind Bitcoin’s continuous push past all-time highs. According to data from SoSoValue, net inflows into 12 spot Bitcoin ETFs skyrocketed by 250% last week, reaching a total of $2.72 billion compared to the previous week’s $770 million.
The week began with a strong start, with $216.6 million in net inflows on Monday, followed by a slight dip to $80 million on Tuesday. However, momentum quickly picked up again midweek, with Wednesday seeing inflows of $218 million. The trend continued with even stronger inflows on Thursday and Friday, totaling $1.18 billion and $1.03 billion, respectively.
Among the various ETFs, BlackRock’s IBIT saw the highest net inflows of $1.75 billion, followed by Fidelity’s FBTC with $400 million and ARK 21Shares’ ARKB with $339 million. Other funds like Bitwise’s BITB, Invesco’s BTCO, Valkyrie’s BRRR, and VanEck’s HODL, along with inflows into Grayscale’s new BTC fund, contributed an additional $270 million. However, this was partially offset by net outflows of $50 million from Grayscale’s legacy GBTC.
In addition to the surge in ETF flows, corporate interest in Bitcoin also saw a significant uptick. Swedish health tech firm H100 Group raised over $54 million to bolster its Bitcoin accumulation strategy, while e-commerce company DDC Enterprise Limited partnered with Animoca Brands for a $100 million allocation toward advancing its Bitcoin strategy. The ‘bitcoin standard’ trend, popularized by MicroStrategy, has gained traction among other corporate adopters like Sequans Communications, GameStop, Metaplanet, and The Smarter Web Company.
The influx of funds has fueled a fresh wave of momentum in Bitcoin’s price, with the cryptocurrency breaking past its previous all-time high to reach $118,872. Over the weekend, Bitcoin consolidated between $117,000 and $118,000 before surging to a new all-time high of $122,838. Analysts attribute Bitcoin’s rally primarily to spot ETF demand, downplaying the impact of central banks or macroeconomic volatility.
Georgii Verbitskii, founder of crypto investing app TYMIO, highlighted the significance of the steady increase in ETF inflows, emphasizing the growing long-term conviction among institutional investors. While he acknowledged the possibility of a pullback in case of adverse macro conditions, he remained optimistic about the ETF’s role in channeling institutional capital into Bitcoin as a secure, decentralized asset.
As of the latest update, Bitcoin is trading at $122,730 per coin, showing a 4% increase over the past 24 hours. The ongoing rally fueled by institutional interest and ETF inflows indicates a positive outlook for Bitcoin’s future trajectory.