The cryptocurrency market experienced a boost on May 15, 2024, as U.S. spot Bitcoin ETF inflows reached a two-week high of $303 million.
This surge in institutional investment coincided with Bitcoin’s price climbing beyond $66,000, marking a notable milestone for the world’s largest cryptocurrency.
TLDR
- U.S. spot Bitcoin ETF inflows reached a two-week high of $303 million on May 15, 2024, as Bitcoin’s price surged beyond $66,000.
- Fidelity’s FBTC led the inflows with $131.3 million, while Grayscale’s GBTC saw its first day of inflows in a week, drawing in $27 million.
- Institutional investors, including Millennium Management, Elliot Capital, and Apollo Management Holdings, have bought into spot Bitcoin ETFs.
- The State of Wisconsin’s Investment Board allocated $163 million to Bitcoin ETFs, becoming one of the first U.S. public pension funds to do so.
- The positive market reaction is attributed to the lower-than-expected April CPI data (0.3%), which has increased optimism about potential Federal Reserve interest rate cuts and increased liquidity.
Leading the charge in Bitcoin ETF inflows was Fidelity’s FBTC, which attracted an impressive $131.3 million. Bitwise’s BITB also had a strong showing, with inflows of $86.3 million.
Interestingly, Grayscale’s GBTC, which had been facing outflows over the past four months, saw a reversal in sentiment, registering an inflow of $27 million.
This shift could indicate a change in the perspective of investors who have been investing in the biggest Bitcoin investment resources globally.
The recent quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC) revealed that institutional investors have been actively buying into spot Bitcoin ETFs.
Prominent hedge fund Millennium Management, with over $64 billion in assets under management, holds a substantial $2 billion portfolio across various spot Bitcoin ETFs, including BlackRock’s IBIT, Fidelity’s FBTC, Grayscale’s GBTC, Ark Invest’s ARKB, and Bitwise’s BITB. Other notable investors include Elliot Capital and Apollo Management Holdings.
In a groundbreaking move, the State of Wisconsin’s Investment Board allocated $163 million to Bitcoin ETFs, becoming one of the first U.S. public pension funds to do so.
This allocation was split between BlackRock’s IBIT ($99.1 million) and Grayscale’s GBTC ($63.6 million). The decision by a state pension fund to invest in Bitcoin ETFs marks a significant step towards mainstream adoption of cryptocurrencies.
The positive market sentiment can be attributed to the release of the April U.S. Consumer Price Index (CPI) data, which came in lower than expected at 0.3%.
This key indicator of inflation has increased optimism among investors about the possibility of the Federal Reserve reducing interest rates and injecting more liquidity into the market – a scenario that has historically been favorable for high-risk assets like cryptocurrencies.
As Bitcoin ETFs witnessed renewed interest, the price of Bitcoin experienced a significant surge, reaching a high of $66,350 during early Asian trading on May 16.
This marks a notable recovery for the cryptocurrency, which is now just 10% away from its all-time high of $73,750, reached on March 14.
