Spot Bitcoin ETFs See $604 Million Weekly Inflows, Extending Inflow Streak

US spot Bitcoin Exchange Traded Funds (ETFs) experienced a noticeable deceleration in inflows during the past week despite recording a weekly inflow of $604 million. Investors adopted a risk-off posture in response to Federal Reserve Chair Jerome Powell’s recent hawkish pronouncements about future interest rate reductions.

Data compiled by SoSoValue indicates that Bitcoin ETFs attracted $603.74 million between May 12th and May 16th. This figure represents a decrease of approximately 35% compared to the $934 million recorded in the preceding week.

Spot Bitcoin ETF Sees Mixed Investor Sentiment

BlackRock’s IBIT fund emerged as the primary beneficiary of last week’s inflows, amassing a substantial $841.7 million. In contrast, Grayscale’s BTC and VanEck’s HODL funds registered more modest inflows of $39.8 million and $7.3 million, illustrating a varied landscape among different ETF offerings.

However, the week was not universally positive. Fidelity’s FBTC experienced outflows of $122.2 million, while Grayscale’s GBTC and ARK 21Shares’ ARKB 21Shares each saw outflows of approximately $70 million.

Furthermore, Bitwise’s BITB and Invesco’s BTCO also recorded minor net redemptions, indicating a degree of investor apprehension. The remaining ETFs experienced negligible flow activity during the period.

Despite the recent slowdown, Bitcoin ETFs are still doing well in May. So far this year, they’ve gained $2.64 billion, close to April’s $2.97 billion. Since January 2024, Bitcoin ETFs have pulled in over $41 billion, showing they’ve greatly affected the crypto market.

This week, Ethereum ETFs did better. The nine funds tracking Ethereum gained $41.59 million, rebounding from last week’s loss of $38.15 million.

BTC Price Action 

Over the past five days, Bitcoin (BTC) initially maintained a critical support level. However, as trading conditions deteriorated across the cryptocurrency market, BTC ultimately slipped below this threshold, accompanied by a shift in market sentiment toward a more negative outlook.

Moreover, the Fear and Greed Index fell from 73 to 67. This shows that investors are less confident, and the upward trend from last week did not last. This also means less money is coming into the market.

Adding to the negative mood, Bitcoin’s trading volume is down significantly, dropping by 18%. The price also shows a slight increase in selling, which seems to be happening across the cryptocurrency market, with overall buying and selling down by over 9%.

At the time of writing, Bitcoin is trading near the $102,000 support level. Prices have mostly stayed around this level for the past week. 

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