Bitcoin Spot ETFs Witnessed Record-Breaking Inflows: What Does This Mean?
Spot Bitcoin (BTC) exchange-traded fund by Purpose is the first-every cryptocurrency ETF avaliable for retail investors and institutions. As such, its dynamics are a crucial indicator for market sentiment.
Record-breaking inflow pushes Purpose Bitcoin ETF closer to new highs
Yesterday, May 4, 2022, the highest daily inflow of value was registered for Purpose Bitcoin (BTC) Spot ETF. This spike was noticed by automated on-chain monitoring service Glassnode.
Wow! ? The biggest inflow ever was recorded yesterday for the #Bitcoin Purpose spot ETF. More than 2.9k $BTC added within one day.?
— Jan Wüstenfeld ?? (@JanWues) May 5, 2022
AUM with that is currently at 34.4k BTC and roughly 2k BTC away from the all-time high. pic.twitter.com/3y3sFGBQ0Q
More than 2,900 Bitcoins (BTC) were added to this instrument in just 24 hours. The previous record was set back in March 2021 amid growing Bitcoin (BTC) euphoria prior to its May 10 local high.
Record-breaking outflows reduced the volume of Purpose Spot Bitcoin ETF by almost 2,000 Bitcoins, registered in late February 2022 amid market panic.
Rapid inflows are not necessarily associated with upcoming price increases. However, some analysts are treating them as signs of confidence of Bitcoin (BTC) bulls.
Market metrics spike on Fed's historical announcement
The aggregated volume of assets under management for Purpose Spot Bitcoin ETF is 34,400 Bitcoins (BTC). That said, the ETF stopped just 2,000 BTC away from the new all-time high.
Such an upsurge in Bitcoin (BTC) bulls' optimism can be attributed to the announcement by the Fed's Jerome Powell. Yesterday, he shared that interest rates in the U.S. are increased by by 50 basis points (bp).
Alex DovbnyaThis is the largest rate hike since 2000. An even more impressive upsurge by 75 bp is "not actively considered" by U.S. Federal Reserve officials.
Alex Dovbnya
Dan Burgin