- May 21 saw a $306 million net inflow for Bitcoin spot ETFs, making it seven days in a row.
- While the price of BTC fell by 1.75% in a single day, it had risen by 12.83% in the previous week.
May 21 saw a remarkable US$306 million net inflow of Bitcoin spot ETFs, the sixth day in a row. This tendency demonstrates how investors are becoming more and more interested in Bitcoin spot ETFs, according to Collin Wu, a popular crypto journalist.
SosoValue reports that whereas BlackRock ETF IBIT had a significant single-day inflow of $290 million, Grayscale ETF GBTC had a single-day net outflow of $0.00. The Bitcoin spot ETF’s net asset value as of right now is an astounding $58.910 billion.
On May 21, the total net inflow of Bitcoin spot ETF was US$306 million, marking seven consecutive days of net inflow. Grayscale ETF GBTC had a single-day net outflow of $0.00, BlackRock ETF IBIT had a single-day inflow of $290 million, and the total net asset value of the Bitcoin… pic.twitter.com/LD66xA9sB4
— Wu Blockchain (@WuBlockchain) May 22, 2024
Trends in Bitcoin Price Right Now
According to CoinGecko data, the price of BTC at the moment of writing is about $6,769.45, down 1.75% from the last 24 hours. Even with this most recent decline, Bitcoin has been trending upward over the last week, rising by a noteworthy 12.83%.
This oscillation pattern begs the issue of whether the current price swings in Bitcoin are sustainable.
Dead Cat Bounce or Sincere Recovery?
Many analysts and investors have been watching the recent rise in Bitcoin prices. Previously, ETHNews looked into the possibility of a real rebound or a dead-cat bounce in the current Bitcoin price increase.
A dead-cat bounce is the term for a brief price recovery of a decreasing asset that is followed by the downtrend continuing. When markets are under extended bearish conditions, this phenomena frequently happens.
Market Analysis and Investor Sentiment
Significant investments into Bitcoin spot ETFs, especially the large investment in BlackRock’s IBIT, suggest that investors are quite confident about the future of Bitcoin.
Despite the volatility of the short term price, this capital inflow into Bitcoin spot ETFs indicates that investors are confident in the long-term prospects of Bitcoin. The $58.910 billion total net asset value demonstrates the enormous interest and trust in these investment vehicles.
Fox Business Journalist on ETH and BTC ETFs
Meanwhile, spot BTC ETF issuers CoinShares and Valkyrie have decided not to apply for spot ETH ETFs, according to Fox Business journalist Eleanor Terrett.
The main argument offered is that these firms feel ETH’s absence of a staking mechanism reduces its value to investors. The decision emphasizes how competitive the nine-issuer ETF market is right now.
🚨SCOOP: $BTC spot ETF issuer @CoinSharesCo/@ValkyrieFunds will not apply for an $ETH spot ETF mainly because of the no staking aspect. Sources familiar tell me the company doesn’t see value for investors without it, especially in a crowded market alongside 9 others issuers.
— Eleanor Terrett (@EleanorTerrett) May 21, 2024
The choice of CoinShares and Valkyrie to forgo spot ETH ETFs emphasizes how crucial staking functions are to the assessment of cryptocurrency assets.
Adding yet another level of possible profits, staking enables investors to profit by taking part in the consensus mechanism of the network. Without this capability, in a market currently overflowing with ETF choices, ETH is seen as less appealing.