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Bull Run Gathers Momentum as Nearly $1B Flows Into Crypto Products

With inflows resuming across US ETF products, analysis shows a supply shock is imminent.

bitcoin displaying on a tablet with dollar bills in background

The largely anticipated bull run is gaining momentum, as crypto investment products saw a net inflow of $932 million last week. The investor influx marked the second successive week of net inflow after a $130 million positive flow the previous week.

As expected, Bitcoin products led the massive inflow, as $942 million flowed in through the asset’s exchange-traded fund (ETF) issuers. Fidelity’s FBTC led the charge for the second month running, raking in $344 million. Recently, the issuer has shown that it could compete with BlackRock, the second-largest asset manager in terms of assets under management (AUM).

Ark Invest’s ARKB managed the second-largest weekly inflow, recording a net of $244 million. BlackRock’s IBIT surprisingly ranked third, seeing just a $132 million net inflow. This was the second week the Larry Fink-managed firm dropped from its usual pole position.

Another exciting feature of the week’s inflow data was Graysclae’s positive weekly turnout. The asset manager saw its first weekly net inflow since January 11 as it raked in $18 million amidst a reduction in selling pressure. With last week’s inflow, the total net inflow since the Bitcoin ETF went live has topped $12.5 billion again.

Ethereum Struggles Again

Ethereum has continued to see investors divest from the asset following concerns that the US Securities and Exchange Commission (SEC) may not approve Ether ETF products filed by different firms by the end of May. Last week, $23.3 million flowed out of Ethereum.

Other crypto assets, like Solana, Cardano, and Chainlink, saw notable inflows as the broader market showed signs of a bullish push. Solana saw a $4.9 million inflow, Cardano saw $1.9 million, and investors moved $3.7 million into Chainlink.

Incoming Supply Shock?

With inflows from US ETFs resuming, the crypto market might soon experience an impending supply shock. Data shows that Bitcoin whales have been on a buying spree, further impacting the limited Bitcoin supply post-halving.

Last week, Bitcoin ETFs bought 14,389 BTC, while miners only mined 3,150. This shows that the product alone acquired 4.5x more than miners are producing. With Bitcoin on Coinbase falling to a new low on May 17, all pointers lead to an incoming supply shock.

Meanwhile, Bitcoin rebounded over 6% last week, breaking the $65,000 hurdle following favorable customer price index (CPI) data on Wednesday. At press time, Bitcoin is trading at $67,384.

Elendu Benedict

Elendu Benedict is a professional writer with sheer competence in crypto-related journalism. With a background in Engineering, Benedict specialises on news related to ETFs, market analysis, and macroeconomic policies that affects the crypto market.