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Bitcoin tops $72,000 as ETFs pull $155 million, extending two week inflow streak

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(Glassnode)

Bitcoin remained bid Thursday amid signs of persistent demand for spot exchange-traded funds (ETFs).

The leading cryptocurrency traded near $72,500 on Thursday, according to CoinDesk market data. The U.S.-listed spot ETFs pulled in another $155 million in net inflows on Wednesday, extending a recent streak of institutional buying that has helped lift prices after weeks of sluggish activity.

The fresh inflows bring total allocations to roughly $1.47 billion over the past two weeks, according to data curated by SoSoValue, marking a sharp reversal after several weeks of withdrawals earlier this year.

Institutional demand through ETFs has begun to stabilize after a difficult start to the year. Investors have poured roughly $1.7 billion into U.S. spot bitcoin ETFs since Feb. 24, according to Bloomberg Intelligence data previously reported by CoinDesk, suggesting some investors are growing more comfortable that the market may have found at least a near term floor.

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Earlier this week, analysts at Bitfinex cautioned that ETF inflows do not always translate into immediate buying pressure in the spot market. Authorized participants can create and short ETF shares before sourcing the underlying bitcoin, delaying the impact of those flows on price.

Still, the spot ETF inflows and bitcoin’s recent resilience during geopolitical tensions indicates growing macro relevance of the cryptocurrency, according to some market participants.

“Bitcoin is increasingly being repriced by the market as a geopolitical hedge rather than just a risk asset,” said Livio Weng, CEO of Bitfire. “Unlike gold, bitcoin trades 24/7 and can move across borders instantly, which makes it a natural escape valve for capital during periods of geopolitical stress.”

On-chain data calls for caution

Despite the rebound in flows, underlying demand signals remain fragile, according to Glassnode. In a recent report, the firm said buy-side momentum has weakened significantly, with the 30-day moving average of realized profit falling about 63% since early February.

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The share of bitcoin supply held in profit has also slipped to roughly 57%, a level historically associated with early stages of deeper bear market conditions. Glassnode added that the cost basis of short-term holders near $70,000 could act as a key behavioral ceiling, potentially turning rallies into distribution zones as traders exit positions near breakeven.

(Glassnode)

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Crypto World

US Bitcoin ETFs Post $462 Million Inflows as BTC Tops $73K

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US Bitcoin ETFs Post $462 Million Inflows as BTC Tops $73K

US spot Bitcoin exchange-traded funds increased inflows on Wednesday, with gains distributed across most issuers, as BTC briefly surged past $73,000.

Spot Bitcoin (BTC) ETFs posted $462 million in net inflows, marking the third consecutive day of inflows and bringing the weekly total to $1.1 billion, according to Farside data.

The new gains bring year-to-date flows to about $700 million, a modest amount after the ETFs shed $3.8 billion during a five-week outflow streak.

Ether (ETH) funds shared the sentiment, drawing $169 million in inflows after seeing minor outflows of $11 million on Tuesday.

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The flows highlight a potential market reversal, with analysts observing that most Bitcoin ETFs have now turned to net positive flows YTD.

All but one spot Bitcoin fund see gains

Wednesday marked a rare occasion when nearly all US spot Bitcoin funds attracted inflows, with only the CoinShares Bitcoin ETF (BRRR) recording zero inflows on the day.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) again led inflows with $307 million, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Grayscale Bitcoin Mini Trust ETF (BTC) with $48 million and $32 million, respectively.

Daily flows in US spot Bitcoin ETFs by issuer since Monday (in millions of US dollars). Source: Farside.co.uk

According to Bloomberg ETF analyst Eric Balchunas, almost all Bitcoin ETFs had turned net positive in year-to-date flows as of Tuesday, with only three funds still showing losses.

Those include FBTC with $1.1 billion in outflows, as well as the Grayscale Bitcoin Trust ETF (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB), which have seen $648 million and $162 million in outflows, respectively.

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Source: Eric Balchunas

The latest wave of gains in Bitcoin ETFs came amid a sentiment recovery attempt, with the Crypto Fear & Greed Index jumping 12 points over the past 24 hours, according to Alternative.me data.

Related: Altcoin chatter sinks to 2-year low as Bitcoin holds attention

Despite Bitcoin recovering about 20% from February’s low of $60,000, the index still stands at “extreme fear” with a score of 20.

At the time of writing, Bitcoin traded at $72,214, down about 8% over the past 30 days, according to CoinGecko.

Magazine: Would Bitcoin really be at $200K if not for Jane Street? Trade Secrets

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