Bitcoin ETF Approval Indications: Could Bull Market Be Commencing?
Week-Long Bitcoin ETF Influx Hits $3 Billion, Stoking Market Recovery
Bitcoin ETFs on the ABD platform experienced an impressive six-day run of daily inflows, ending with a grand total of $3 billion over the week. This marked the first successful week since March, bucking the trend of fee wars and strengthening investor interest. The inflow reached a staggering $380 million on April 25 alone.
Globally, the digital asset market hinted at a recovery, edging closer to a staggering $3 trillion market value, with daily trading volume reaching approximately $100 billion. The Fear and Greed Index reported that investor sentiment was on the rise, reaching the "greed" level.
The Rise of BlackRock's IBIT ETF and Fading Grayscale
The past few weeks have seen Bitcoin ETF inflows for five consecutive days. On April 21, $381.4 million, April 22, $936 million, April 23, $916 million, and April 24, $442 million were recorded in inflows. BlackRock's IBIT ETF led the pack with a daily net inflow of $240.15 million, amounting to $41.2 billion in total net inflows. Fidelity's FBTC product came in second, recording a net inflow of $108.04 million, with total net inflows of $11.86 billion. On the flip side, Grayscale's GBTC product continued to lose value, with a daily outflow of $7.53 million, resulting in a total loss of $22.69 billion in funds.
Meanwhile, Bitcoin price surged over 10% during this period, trading at an average of $94,366. The 24-hour trading volume increased by 16% to $35.7 billion.
Bloomberg analyst Eric Balchunas characterized the situation as "ETFs are essentially Bitcoin's cheerleaders," with the rapid increase in fund flows apparently driven by Wall Street's favorite arbitrage strategy, "wash trading."
Institutional Investor interest Grows
Early April saw volatile market fluctuations that rattled investors. On April 18, 9 out of 10 trading days closed in the red. Speaking at the Bitcoin Corporations Investor Day event, Michael Saylor of Bitwise expressed optimism about BlackRock's IBIT product potentially outgrowing giants like Vanguard's S&P 500 ETF (VOO) over the next decade. Saylor suggested that the IBIT could surpass the VOO's current market value of $593.5 billion.
ETFs Fueling Corporate Interest in Bitcoin
The influx of funds into Bitcoin ETFs not only drives up prices but also stokes corporate interest in Bitcoin. Social media chatter indicates that ETFs are seen as a testament to Bitcoin's legitimacy and long-term potential.
Related: New SEC Chair to Review Over 70 Crypto ETF Applications
Fluctuating data from Glassnode shows that the open interest in perpetual swaps has risen to 281,000 BTC, a 15.6% increase since March. This surge in open interest, together with the price rally, hints at a rise in long positions. However, the average funding rate has decreased to -0.023%. Experts suggest that investors might be taking profits, potentially leading to a future "short squeeze."
In essence, while the SEC has yet to reveal updates on specific Bitcoin ETF applications, the trend towards crypto ETF approvals and the expansion to various cryptocurrencies signifies a robust and growing institutional interest in the crypto sector.
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- The impressive six-day influx of funds into Bitcoin ETFs on the ABD platform totalled $3 billion, with BlackRock's IBIT ETF leading the pack, recording a daily net inflow of $240.15 million.
- The surge in these ETF inflows was characterized by Bloomberg analyst Eric Balchunas as "ETFs are essentially Bitcoin's cheerleaders," with the rapid increase in fund flows possibly driven by Wall Street's favorite arbitrage strategy, "wash trading."
- Institutional investor interest in Bitcoin has grown, with Michael Saylor of Bitwise expressing optimism about BlackRock's IBIT product potentially outgrowing giants like Vanguard's S&P 500 ETF (VOO) over the next decade.
- Meanwhile, the rise of institutional interest in Bitcoin ETFs is not only driving up prices but also stoking corporate interest in Bitcoin, with social media chatter indicating that ETFs are seen as a testament to Bitcoin's legitimacy and long-term potential.
