Wall Street’s Bitcoin ETF Frenzy Fuels Historic Price Surge
Institutional money floods crypto—again. This time, it’s ETF-driven.
Bitcoin’s latest bull run isn’t fueled by retail FOMO or Elon tweets. The real catalyst? A stampede of traditional finance giants piling into spot Bitcoin ETFs like it’s 2021 all over again.
Why the sudden love affair? Simple: Wall Street finally found a way to profit from crypto without touching the ‘risky’ underlying asset. Classic.
The rally defies skeptics—for now. But with every hedge fund and pension fund jumping in, the real question isn’t ‘how high?’ It’s ‘who gets left holding the bag?’
$110,666 ETFs have been witnessing a relentless influx of institutional investors. US-based spot Bitcoin ETFs registered a net inflow of $609 million on Wednesday, marking the sixth consecutive day of positive flow. This development coincided with Bitcoin surpassing $108,000, a record that was recently refreshed at $111,861.
ContentsInstitutional Capital Moves the RallyNew Highs Introduce Fresh Uncertainties
Institutional Capital Moves the Rally
In recent weeks, the surge in bitcoin prices is primarily driven by institutional investors, not just individual enthusiasts. Large capital groups focusing on spot Bitcoin ETFs appear to be key drivers supporting this rally. ETFs, particularly aimed at institutional investors, have emerged as a safe investment tool with growing regulatory clarity. According to BTC Markets CEO Caroline Bowler, the strong demand seen in the current landscape is a result of institutional infrastructure and investor sentiment is now clearly shifting in this direction.
Among the standout products, BlackRock’s IBIT fund recorded the highest net inflow of $530.6 million on Wednesday. On the same day, Fidelity’s FBTC, Bitwise’s BITB, and Grayscale Mini BTC Trust also saw inflows exceeding $20 million. ETFs from VanEck, Ark & 21Shares, and Valkyrie recorded significant inflows as well. With these developments, the 12 spot Bitcoin ETFs in the US reached a total trading volume of $7.64 billion on Wednesday, the highest daily volume since February 25.
New Highs Introduce Fresh Uncertainties
Bitcoin’s fresh record has excited investors but also prompted caution. HashKey Capital Partner Jupiter Zheng pointed out that the leading cryptocurrency has now entered “uncharted territory,” increasing market volatility. According to Zheng, investors are now pricing not just technical data but also geopolitical risks and macroeconomic uncertainties on a global scale.
Bitcoin’s daily gain reached 3.6%, trading at $110,684 at the time of writing. Although it is only mid-May, the ETFs have experienced a total net inflow of $4.24 billion this month, marking a robust performance. Since their launch in January 2024, the 12 spot Bitcoin ETFs have attracted a cumulative capital of $43.38 billion.
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