Bitcoin’s price has experienced a significant surge, reaching approximately $67,000 and leading to a notable increase in Bitcoin ETF volumes. This surge in trading activity, which hasn’t been seen since late March, has resulted in a daily volume of around $6 billion.
There are several key factors behind this surge in Bitcoin’s price. One of the significant factors is the inclusion of Bitcoin in new institutional investment products. In the United States alone, around 1,000 firms have purchased Bitcoin exchange-traded funds (ETFs). Research firm Santiment has reported that daily spot Bitcoin volumes have exceeded $5 billion. This increased adoption by institutions has contributed to the rise in Bitcoin’s price.
In just one day, the total volume of seven Bitcoin ETFs reached a record high of $5.65 billion. This is the highest volume recorded since BTC/USD reached its all-time high of $73,800. Santiment’s research also revealed that this week witnessed a total volume of $5.65 billion among the seven largest spot ETFs in the US. This increase in trading volume indicates a shift from whales accumulating Bitcoin solely on-chain.
The surge in Bitcoin’s price has had a positive impact on the overall market, as noted by hedge fund manager Thomas Kralow. The increase in spot ETFs has continued throughout May, with positive inflows every day.
Interestingly, institutions like Grayscale Bitcoin Trust, which were previously associated with significant outflows, have recently seen modest interest. According to data from UK investment firm Farside, Grayscale Bitcoin Trust (GBTC) received modest interest of $27 million and $4.6 million on May 16 and 17, respectively.
The adoption of Bitcoin ETFs by institutions is becoming more evident, as evidenced by the 937 US firms that turned to Bitcoin ETFs in the first quarter. This number far exceeds the number of firms interested in gold ETFs during their first quarter post-launch.
The rebound in Bitcoin’s price from the $65,000 support level is attributed to genuine institutional and sovereign adoption by trading firm QCP Capital. They also highlight that Bitcoin has exited the halving period and has experienced a sharp rebound when its price fell below $60,000.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
