Spot Bitcoin ETFs reach $303M in Net Inflows

Spot Bitcoin ETFs reach $303M in Net Inflows

US spot Bitcoin ETFs attracted a combined $303 million in net inflows on May 15, signaling growing institutional interest in Bitcoin. Leading this surge was Fidelity’s ETF, which secured $131 million in net inflows, according to SoSo Value data. Bitwise and Grayscale followed with $86.26 million and $27.05 million, respectively. Surprisingly, the iShares Bitcoin Trust saw no net inflows or outflows.

This renewed interest in Bitcoin is linked to a broader breakout in risk assets, spurred by lower-than-expected US inflation data. Crypto analysis firm QCP Capital anticipates this bullish momentum could push Bitcoin above its previous peak of $74,000.

Adding to the positive outlook, a report from Caixin, a Chinese financial media outlet, highlights Hong Kong’s dominance in cryptocurrency ETFs. With most issuers based in Hong Kong under Beijing’s regulatory oversight, this aligns with China’s national strategy and could open up the Chinese market to millions of potential cryptocurrency investors.

QCP Capital notes that “the stars seem to be aligning on this breakout,” pointing to growing sovereign and institutional adoption, receding inflation, and the upcoming US elections as key factors. Significant purchases of December 2024 Bitcoin call options by major asset managers Millennium and Schonfeld further underscore the institutional interest in Bitcoin spot ETFs.

The resurgence of Bitcoin’s bullish momentum raises the question of whether a new bull market is emerging. Analysts at QCP Asia Colour believe there’s a strong possibility. They recommend “Bullish ERKO Seagulls” trading strategies for investors looking to capitalize on this potential upswing.

For those interested in exploring the potential bull run, the report outlines two “Seagull” trade ideas:

  • June Seagull: Potential for a 249% annualized return if Bitcoin reaches just under $88,000 by June 27.
  • August Seagull: Potential for a 176% annualized return if Bitcoin reaches near $100,000 by August 30.

With institutional adoption on the rise and evolving regulatory landscapes, the future of digital assets remains a crucial topic. To explore these issues further, join the conversation at Benzinga’s Future of Digital Assets event on Nov. 19.

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