Bitcoin prices entered a bullish phase following a surge in inflows into spot Bitcoin ETFs and a 7% uptick in price over the last 24 hours. This upward momentum follows the release of key US inflation data, which met market expectations and alleviated investor worries.
Spot Bitcoin ETF inflows in the US surged to a two-week high of $303 million on May 15th, indicating a renewed confidence among institutional investors in the cryptocurrency. Fidelity's FBTC fund led the influx with a record-breaking $131 million, its highest since March 26th. Bitwise's BITB fund also experienced robust inflows of $86 million, marking its highest since early March. Even Grayscale's GBTC, which had seen outflows in the previous four months, witnessed a reversal with $27 million flowing in.
This resurgence of institutional interest extends beyond traditional investment firms, with regulatory filings revealing that hedge fund giant Millennium Management holds a substantial $2 billion Bitcoin ETF portfolio. Millennium Management now stands as the largest holder of specific Bitcoin ETFs, including BlackRock's IBIT and Fidelity's FBTC.
Other notable hedge funds like Paul Singer’s Elliott Capital and Apollo Management Holdings have also disclosed holdings in Bitcoin ETFs, underscoring the growing institutional appetite for the digital asset.
The surge in ETF inflows coincided with a notable increase in Bitcoin's price, which surged by 7% on May 15th, reaching a high of $66,567 during early Asian trading. This places Bitcoin within 10% of its all-time high, last reached in December 2021.
The positive market sentiment can be partly attributed to the release of the US Consumer Price Index (CPI) data, which met expectations and allayed concerns about inflation. This outcome is significant as inflation influences Federal Reserve decisions on interest rates. Lower interest rates are typically favorable for riskier assets like Bitcoin, as they stimulate investor demand for higher-yielding alternatives.
May 2024, Cryptoniteuae