By
Svetlana Soroka
April 26th, 2024
The rising inflows coincide with an increase in the price of Bitcoin, which has surged nearly 25% year-to-date.
Bitcoin ETF products have witnessed an unprecedented weekly inflow, totaling nearly $2.5 billion globally. This surge has propelled the assets under management (AUM) at crypto funds back to their December 2021 levels.
Photo: CoinShares
Record Inflows and the Rise of Bitcoin ETFs
Photo: ETF.COM
The last week has seen crypto funds, including those managed by industry giants like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, register record inflows. This inflow is dominated by the newly introduced US spot Bitcoin exchange-traded funds (ETFs), bringing the year-to-date inflows to an impressive $5.2 billion.
The rising inflows coincide with an increase in the price of Bitcoin, which has surged nearly 25% year-to-date. The combined effect of the inflows and the price increase has pushed the AUM at these investment firms to $67 billion, the highest since the peak of the last bull market in December 2021.
US Dominance and Altcoin Funds
The United States has continued to dominate the scene, accounting for 99% of the weekly inflows. Despite this concentration, Switzerland and Germany-based funds have also seen modest inflows. Conversely, Sweden experienced significant outflows, highlighting regional variances in investor sentiment towards crypto funds.
Bitcoin investment products remain the primary focus, capturing 99% of the inflows. However, there’s also notable activity in the altcoin-based funds. Ether leads among altcoins, with $21.1 million in inflows, while Avalanche, Chainlink, and Polygon funds have also seen consistent additions. On the downside, Solana funds experienced outflows, likely affected by the network’s recent downtime.
Bitcoin (BTC) Price Analysis
Photo: TradingView
This month has been particularly bullish for the world’s leading cryptocurrency, witnessing an impressive 27% increase over the past 30 days. Furthermore, it recently achieved a highly anticipated breakthrough above the critical psychological threshold of $50,000. This breakthrough has opened the door for Bitcoin to venture into new price territories and has fueled speculation about the possibility of surpassing its all-time high within the year.
From a technical perspective, Bitcoin’s price has consistently remained above the 0.5 level on the Fibonacci retracement chart, indicating a strong signal of sustainability. This stability suggests that the price is likely to stay above the $50,000 mark. Additionally, the Bollinger Bands are beginning to contract, hinting that the price might stabilize for a short period.
The Directional Movement Index (DMI) reveals that the buying momentum has dominated Bitcoin’s market over the last few days. However, the positive directional indicator (+DI) at 20.11 appears to be at risk of a downturn against the Average Directional Index (ADX) at 17.04 and the negative directional indicator (-DI) at 14.47.
In summary, the inflows into Bitcoin ETFs and its price momentum are currently moving in tandem. This direct relationship may propel Bitcoin’s price to unprecedented levels, especially with the expectation of increased inflows in the near future.