The Bitcoin price soared to $67,000 today, following a significant inflow of $222 million into U.S. Spot Bitcoin ETFs, indicating strong market sentiment.
As investors have redirected their attention towards digital assets, the price of Bitcoin has maintained its ascent today, briefly surpassing $67,000 in the last 24 hours.
Meanwhile, several market analysts attribute the current Bitcoin price surge to the significant U.S. Spot Bitcoin ETF inflow.
Consequently, we shall examine the inflows recorded by the U.S. Spot Bitcoin ETF.
US Bitcoin ETF Records $222M Inflow
Due to a rally of more than 145% over the past 12 months, the price of Bitcoin has gained significant traction since the previous year.
Significantly, the enthusiasm and approval of the U.S. Spot Bitcoin ETF appear to have instilled more assurance in the cryptocurrency industry thus far in the current year.
Recent volatility in the Bitcoin price has been primarily attributable to the Bitcoin ETFs’ chilling fund flow data.
However, significant inflows into the investment instruments indicate that the situation has shifted this week.
Recent data from Farside Investors indicates that the U.S. Spot Bitcoin ETFs have received a total inflow of $221.5 million.
It is worth noting that Fidelity’s FBTC recorded the highest inflow of $99.4 million.
In contrast, the Grayscale GBTC received $31.6 million in incoming capital, bolstering investors’ confidence.
Notably, the investment instrument received a total inflow of $948.3 million this week, reflecting investors’ confidence in the cryptocurrency.
Market Reaction As Price Soars
Eric Balchunas, a senior ETF analyst at Bloomberg, emphasized the tenacity of Bitcoin ETFs in a recent X post, where he noted a significant capital inflow over the previous two weeks.
Balchunas underscored that the inflows above mitigated the adverse inflows encountered in April, thereby restoring the net worth to an estimated “+$12.3 billion” since the inception of these inflows.
However, he emphasized the significance of this number, as it incorporates the frequent inflows and outflows associated with ETF trading.
Moreover, Balchunas cautioned against exhibiting emotional responses to these fluctuations, affirming that the outlook for the foreseeable future remains optimistic.
Additionally, he observed that the Bitcoin ETF flow amounts are comparatively modest compared to assets under management (AUM), which suggests market stability.
Meanwhile, the value of Bitcoin increased by 1.35% to $66,977.71, whereas its transaction volume decreased by 15.50% to $25.81 billion.
Notably, the cryptocurrency has reached a 24-hour peak of $67,459.46 and has gained approximately 146% year-over-year as of this writing.
