Bitcoin ETFs show signs of imminent bull run
The positive streak of bitcoin (BTC) spot ETFs continues strong. Yesterday, June 4, they recorded capital inflows of $900 million, equivalent to 12,590 BTC.
This became the second largest inflow of money in the history of these financial products since its launch in January in the United States.
The highest record of daily inflows for ETFs was on March 12, when they recorded inflows of $1 billion, as can be seen in the following graph.
Of the ETFs with the best performance, the one managed by the Fidelity company stands out, the Fidelity Wise Origin Bitcoin Fund (FBTC), which had inflows of 380 million dollars, equivalent to 5,374 BTC. That is, 42% of the total entries went to this fund.
The iShares Bitcoin Trust (IBIT) fund, managed by BlackRock, was the second best performer, with inflows totaling $274 million, according to data from Farside Investors.
The ARK 21Shares Bitcoin ETF (ARKB) had capital inflows of $139 million, followed by the Bitwise Bitcoin ETF (BITB), which saw inflows of $61 million.
Surprisingly, the Grayscale Bitcoin Trust (GBTC) fund achieved inflows of $28 million, this being his third largest entry since January.
The VanEck Bitcoin Trust ETF (HODL) and Valkyrie Bitcoin Fund (BRRR) also recorded inflows of $4 million and $1.6 million, respectively.
Global capital inflows into ETFs have reached $15 billion. The BlackRock and Fidelity ETFs have been mainly responsible for these financial products performing so well, as they continue to accumulate BTC massively.
Last Monday, ETFs managed to have 15 consecutive days of capital inflows, as reported by CriptoNoticias. With what was achieved yesterday, they reached 16 days in a row.
ETFs and other factors drive up bitcoin price
Spot ETF management companies must purchase and hold bitcoin in their treasuries to back their shares. This process of acquiring bitcoin creates direct and tangible demand in the market, which reduces the amount of bitcoin available on the open market and can lead to an increase in price due to limited supply.
Thus, such financial movements of ETFs signal an imminent bull run for bitcoin. The BTC price has remained strong above $70,000 since yesterday and expectations are bullish, as seen in the TradingView chart below.
According to analyst James Van Straten, another bullish factor is related to the fact that, in the last two days, more than 24,000 bitcoin have been allocated to futures contracts, as seen in the following chart.
This increase places open interest at the fifth highest level in the last 12 months. Historically, when open interest has reached similar levels, it has preceded a high in the price of bitcoin, the analyst notes. Add to this continued positive performance by ETFs and it could lift the price of BTC.
However, Van Straten indicates that the funding rate (an indicator of market sentiment) is lower than at the previous high in March. This is a sign that traders might not be so sure that the price will continue to rise.
