BTC ETFs Gain Momentum with $105 Million Inflows on Monday, Bringing Total Inflows to Nearly $2.4 Billion in the Past Three Weeks
Experts believe that the influx of funds is due to increased global liquidity, which can boost BTC prices by improving market sentiment.
The BTC ETF market continues to rebound, with $105 million in funds flowing in on June 3rd.
Data from the on-chain analytics platform SpotOnChain shows that this marks the 15th consecutive day of positive flows for BTC ETFs, bringing the total inflows to $2.4 billion.
Fidelity’s FBTC recorded a whopping $77 million (over 1,110 BTC) in inflows on Monday.
Meanwhile, Grayscale’s GBTC and BlackRock’s IBIT recorded zero net flows on the same day. Bitwise ETF BITB saw $14 million in inflows, while Ark21Shares’ ARKB ETF recorded a significant $10 million in positive inflows.
The surge in inflows aligns with the increase in global liquidity.
BTC analyst Willy Woo emphasizes that the relationship between BTC price and M2 expansion reflects broader market sentiment and economic conditions.
High M2 expansion indicates loose monetary policy and an increase in money supply. In response, BTC prices tend to rise as investors seek alternative assets for potential returns.
It’s worth noting that BTC prices typically respond positively to an increase in money supply and concerns about inflation. This is because investors see BTC as a hedge against traditional fiat currencies like the US dollar, which may depreciate due to inflation.
In a market update on Monday, Bitfinex analysts pointed out that BTC ETFs have seen an average daily inflow of $136 million over the past two weeks.
They stated, “This is four times the selling pressure of miners, and BTC is in an accumulation phase.”
The analysts also highlighted that the correction phase may be nearing its end. They attributed the recent dip in gold prices to selling activities by long-term holders.
Reports show that long-term holders have started accumulating BTC for the first time since December 2023.
Since the BTC halving on April 20th, investor confidence has risen, strengthening the bullish narrative. This can be seen from the surge in BTC’s realized capitalization, which is close to $600 billion.
The BTC Realized Cap indicator provides a unique perspective on the market dynamics, investor behavior, and historical trends within the BTC ecosystem, based on the last moved price of BTC.