Key Takeaways:
This week, spot Bitcoin exchange-traded funds (ETFs) attracted an impressive $2.75 billion in inflows, nearly 4.5 times higher than the previous week’s total. Institutional investors, spearheaded by BlackRock’s IBIT and other firms, are at the forefront of this growth surge, while retail involvement remains relatively low. Despite the significant inflows and increasing Bitcoin prices, on-chain analysis indicates that the current rally has not yet reached an overheating phase.
In a remarkable display of demand, US spot Bitcoin ETFs garnered $2.75 billion this week, coinciding with Bitcoin’s rise past its January peak of $109,000 to a fresh all-time high of $111,970. This figure marks a substantial increase from last week’s inflow of $608 million, as reported by Farside.
On May 23, the single-day inflow for ETFs was recorded at $211.7 million, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the way by contributing $430.8 million—its eighth consecutive day of net inflows.
BlackRock Continues to Dominate ETF Inflows
While BlackRock continues to capture much of the ETF inflow market, Grayscale’s GBTC experienced outflows of $89.2 million, and ARK 21Shares’ ARKB saw a reduction of $73.9 million. The recent spike in inflows coincided with a surge in Bitcoin activity; on May 21, the day Bitcoin surpassed $109,000, ETFs witnessed net inflows totaling $607.1 million.
This upward trend brought Bitcoin to a record-high the following day, although a minor price correction has since occurred. The Crypto Fear & Greed Index, which assesses market sentiment, also reflected a shift in mood, dropping from an “Extreme Greed” rating of 78 to 66 over the past 24 hours, indicating a more cautious approach among investors amidst record price levels.
As May unfolds, it has the potential to eclipse the previous monthly ETF inflow record of $6.49 billion set in November 2024. With five trading days remaining, spot Bitcoin ETFs have already attracted $5.39 billion in inflows.
Market analysts express optimism regarding the current state of affairs, highlighting on-chain data that suggests the rally is not overheated. CryptoQuant’s Crypto Dan pointed out that low funding rates and minimal short-term capital inflows, along with limited profit-taking from short-term investors, may signal continued upward momentum for Bitcoin.
Bitcoin Hits All-Time High – Still Not Overheated
“Overheating indicators such as the funding rate & short-term capital inflow remain low compared to previous peaks, & profit-taking by short-term investors is limited.” – By @DanCoinInvestor pic.twitter.com/kqyzFSwzfd
— CryptoQuant.com (@cryptoquant_com) May 22, 2025
Institutions Take the Wheel in Bitcoin Rally
The current Bitcoin market rally is largely being propelled by institutional investments rather than the typical influx of retail buyers, a recent report from Matrixport reveals. Analysts noted, “This rally is unfolding largely without retail participation,” highlighting the absence of the usual frenzied momentum associated with previous market cycles.
According to the report, there’s been a significant shift in Bitcoin’s market dynamics. Unlike previous bull runs driven by individual investors, fueled by social media hype and fear of missing out (FOMO), the current phase is characterized by large institutions looking to Bitcoin as a safeguard against inflation.
The report further emphasized the gradual and quiet transition of Bitcoin ownership from early adopters, miners, and exchanges to a new class of investors, primarily corporations. Among the major institutional players is Strategy, noted as the largest corporate holder of Bitcoin.
Data from Bitcoin Treasuries indicates that 204 institutions currently hold Bitcoin, with over half being publicly traded companies. In just the past month, 11 new companies have added Bitcoin to their portfolios. Recently, Strategy announced a significant initiative to raise $2.1 billion via Series A Perpetual Preferred Stock, with proceeds likely allocated for further Bitcoin acquisitions.
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