Bitcoin exchange-traded funds (ETFs) based in the United States have recorded massive weekly inflows of $2.75 billion, marking the strongest performance in nearly a month. This surge coincides with Bitcoin reaching a new all-time high earlier this week, crossing the $111,000 mark before settling slightly lower.
Inflows Surge, Led by BlackRock’s IBIT
According to data from Farside Investors, spot Bitcoin ETFs witnessed their most impressive weekly performance in recent times, attracting inflows nearly 4.5 times greater than the $608 million recorded the previous week.
On the final trading day of the week, 23 May, spot Bitcoin ETFs collectively posted $211.7 million in inflows. BlackRock’s iShares Bitcoin Trust (IBIT) was the standout performer, registering $430.8 million in inflows and marking its eighth consecutive day of gains.
In contrast, Grayscale’s GBTC continued its streak of outflows, leading the day with $89.2 million in redemptions. ARK 21Shares’ ARKB followed with $73.9 million in outflows.
Bitcoin Hits All-Time High, Then Dips Slightly
This ETF inflow frenzy came as Bitcoin broke its previous record high of $109,000 on 21 May, climbing to a new peak of $111,970 the next day. However, at the time of writing, Bitcoin is trading slightly lower at $108,141, based on data from CoinMarketCap.
Despite the pullback, analysts remain optimistic. The recent surge in inflows and price is being viewed as a bullish sign rather than an indication of overheating.
Sentiment Cools Slightly in Crypto Market
The Crypto Fear & Greed Index, a key indicator of investor sentiment, showed a slight dip in confidence over the past 24 hours. The index now reads “Greed” at 66, a drop of 12 points from the previous day’s “Extreme Greed” level of 78.
This change reflects short-term market caution, although long-term outlooks remain strong. Market watchers interpret this dip as a healthy correction rather than a signal of a broader reversal.
May On Track to Break ETF Inflow Record
So far, May has proven to be one of the strongest months on record for spot Bitcoin ETF inflows. With five trading days remaining, ETFs have already pulled in approximately $5.39 billion. This puts the market on course to surpass the previous monthly record of $6.49 billion set in November 2024.
Analysts suggest that institutional interest continues to grow, contributing to steady capital inflow into these funds. BlackRock’s dominance in attracting ETF investments is also seen as a sign of increasing investor confidence in regulated Bitcoin exposure.
Analysts Say Market Fundamentals Still Strong
Despite the record-breaking price movements and inflows, analysts argue that Bitcoin’s market fundamentals remain healthy.
CryptoQuant analyst Crypto Dan noted on 22 May that “overheating indicators such as the funding rate and short-term capital inflow remain low compared to previous peaks.” He added that profit-taking by short-term investors is currently limited, suggesting further upside potential.
As the market continues to digest Bitcoin’s recent rally, many in the crypto space believe that the surge is being fuelled by sustainable factors rather than speculative mania.
