Bitcoin ETF inflows continue as Wall Street rises on hopes of Fed rate cuts and a ceasefire in the Hamas-Israel war.
The week begins on a high note for Bitcoin investors, with US Bitcoin ETFs seeing net outflows of $217 million on Monday, May 6.
However, this occurred as the leading three Wall Street indices closed in the green amid mounting expectations of imminent Fed rate cuts.
Fidelity Pushes Bitcoin ETF Inflows
Significant net inflows (totaling $217 million) into Bitcoin spot ETFs occurred on May 6, indicating increased investor traction towards exchange-traded products backed by cryptocurrencies.
One of the significant contributors to this influx was Grayscale ETF GBTC, which generated a net inflow of $3.937 million for the second day in a row.
Nevertheless, since last Friday, May 3, inflows into the Grayscale Bitcoin ETF GBTC have decreased substantially from $64 million.
President of Vident Investment Advisory Amrita Nandakumar commented on the development as follows:
“Now that the tide has turned from outflows to inflows, I think moving forward, it’s gonna be harder to predict what direction the flows will go. I’ll be curious to see how closely that’s tied to the price of Bitcoin or how closely it’s tied to what other issuers of Bitcoin ETFs do to try to attract Grayscale investors.”
With a daily net inflow of $99.1936 million, Fidelity ETF FBTC also witnessed substantial activity.
Furthermore, on a single day, Ark Invest and 21Shares ETF ARKB witnessed a significant net inflow of $75.6412 million, underscoring the market’s strong desire for ETF-based exposure to Bitcoin.
In contrast, Hong Kong Bitcoin ETFs have accumulated more than 3,400 Bitcoins in the four days since they began trading.
There has been a decrease in the daily trading volume of these funds since its peak in March.
The previous week witnessed a significant decline in trading volume, amounting to around $11 billion, compared to the initial week of March, which documented a trading volume of more than $32 billion.
Wall Street Recovery
The Dow Jones Industrial Average increased by 176.59 points, or 0.46 percent, to close at 38,852.27 on Monday, May 6.
The 30-stock index recorded its fourth consecutive session of gains.
The S&P 500 closed at 5,180.74, representing an increase of 1.03%, while the Nasdaq Composite reached 16,349.25, reflecting a gain of 1.19%.
Monday’s announcement by Hamas stimulated an increase in stock prices during the early afternoon.
The group accepted an Egyptian-Qatari cease-fire plan to halt the war with Israel.
