Bitcoin ETF Inflows Drive BTC Surge to $52,000: Fineqia
Last week, spot Bitcoin (BTC) ETFs experienced a significant influx of approximately $2.3 billion, nearly doubling the previous week’s inflow. These inflows accounted for almost half of the total net inflow since the inception of BTC ETFs, which currently stands at approximately $5 billion. According to Matteo Greco, research analyst at Fineqia International, the growing demand for BTC ETFs fueled Bitcoin’s surge last week, with the leading cryptocurrency gaining around 8% to close at approximately $52,150.
Consistent Demand for Spot Bitcoin ETFs
Greco noted that positive net inflows into spot Bitcoin ETFs have remained consistent for 16 consecutive trading days since January 26. However, there was a slight increase in outflows from the Grayscale Bitcoin ETF (GBTC) last week, indicating profit-taking by investors following the recent surge in BTC’s price.
Leading BTC ETFs and Trading Volume
The Blackrock Bitcoin ETF (IBIT) leads the pack with over $5 billion in assets under management (AUM), followed closely by the Fidelity BTC ETF (FBTC) with approximately $4.5 billion AUM. The Bitwise Bitcoin ETF (BITB) also crossed the $1 billion AUM milestone. The cumulative trading volume of BTC ETFs reached $9.6 billion last week, with an average daily volume exceeding $1.9 billion.
Market Expectations and Risk Exposure
The upcoming Federal Open Market Committee (FOMC) meeting is expected to maintain rates, but a 25bps cut is anticipated between Q2 and Q3 this year. This expectation has led to increased risk exposure among market participants, contributing to the robust momentum of risk assets like BTC. Gold ETFs, on the other hand, have experienced significant outflows this year, while BTC ETFs have seen strong inflows.
Hot Take: Bitcoin ETF Inflows Drive BTC Surge
The substantial inflows into spot Bitcoin ETFs last week played a crucial role in driving Bitcoin’s surge to $52,000. The consistent demand for these ETFs and the robust trading volume reflect strong buy pressure and heightened activity surrounding BTC. As market participants anticipate a less restrictive monetary policy from the FED, they are increasingly willing to undertake risk exposure, leading to the momentum of risk assets like BTC. This trend contrasts with the outflows seen in gold ETFs this year, further solidifying Bitcoin’s position as a popular investment choice.
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