Bitcoin price surged to $71,767 on Bitstamp due to increased inflows into spot Bitcoin ETFs, with analysts noting a strong link between these inflows and the price rise.
Buckling the trend of recent weeks, US spot Bitcoin exchange-traded funds (ETFs) are seeing a surge in investor confidence. On Wednesday, June 5, 2024, these funds recorded a net inflow of $488.24 million, marking the 17th straight day of positive net flows, according to the data from SoSoValue. This longest streak ties the record set in January and February this year.
Source: SoSoValue
All 11 spot Bitcoin ETFs saw positive or zero net inflows on Wednesday. Fidelity’s FBTC led the way, attracting $221 million. Blackrock’s iShares Bitcoin Trust (IBIT) followed with $155 million. This shows that investors are increasingly seeking exposure to Bitcoin through regulated ETFs.
Beyond the top contenders, Ark Invest and 21Shares’ ARKB pulled in $71 million, while Bitwise’s BITB secured $19 million. Even Grayscale Bitcoin Trust (GBTC), which functions more like a trust than an ETF, saw $15 million in net inflows, marking its second consecutive positive day.
Record-Breaking Inflows Fuel BTC Price
Bitcoin (BTC) price has surged recently, hitting $71,767 on Bitstamp Wednesday evening. This bullish trend follows a sluggish weekend and is linked to increased net inflows into spot Bitcoin ETFs. Analysts see a strong connection between these positive inflows and Bitcoin’s rising price.
The last net outflow from US spot Bitcoin ETFs was on May 10, 2024. Since then, outflows have been rare, with only ARK Invest’s ARKB seeing a $100 million outflow on May 30th. Despite this, the trend remains positive, with 17 consecutive days of net inflows, tying a record from February.
On June 4th, spot Bitcoin ETFs recorded their second-highest daily net inflow of $886.6 million. This large capital injection likely fueled Bitcoin’s price rise. The momentum continued into Wednesday, with net inflows reaching $488.1 million, further boosting Bitcoin’s value.
Bitcoin Inches Closer to All-Time High
The recent price surge has brought Bitcoin within touching distance of its all-time high of $73,750, set on March 14, 2024. While the price currently sits around $70,980, a mere 3.8% away from its all-time high, the crypto community seems confident that a new peak is imminent.
Source: CoinMarketCap
The ongoing inflow streak into US spot Bitcoin ETFs coupled with the rising price suggests a renewed optimism surrounding the world’s leading cryptocurrency. With broader institutional adoption and growing investor interest, Bitcoin’s future appears increasingly bright.
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