On Wednesday, US-based spot Bitcoin exchange-traded funds (ETFs) recorded total net inflows of $609 million. This capital influx coincided with Bitcoin achieving a new record high.
Impact of Institutional Investors on Bitcoin
The recent surge in Bitcoin is attributed to increased interest from institutional investors. According to Caroline Bowler, CEO of BTC Markets, "Today's demand is driven by institutional infrastructure and a clearer regulatory environment. Investor sentiment has now shifted significantly in favor of institutional-grade allocations."
Inflows Statistics for ETFs
According to data from SoSoValue, the largest portion of net inflows on Wednesday was made to BlackRock's IBIT fund, totaling $530.6 million. Other major ETFs, such as Fidelity's FBTC, Bitwise's BITB, and Grayscale Mini BTC Trust, also recorded positive inflows exceeding $20 million. In total, the 12 spot Bitcoin ETFs saw $7.64 billion in trading volume, the highest daily volume since February 25.
Forecasts for Bitcoin Volatility
According to HashKey Capital Partner Jupiter Zheng, with this rise, Bitcoin has now entered 'uncharted territory', which may lead to increased volatility in the coming period. Investors have begun to factor in geopolitical and macroeconomic uncertainties in their long-term pricing.
The recent achievements of Bitcoin and the rise in ETF inflows indicate the continued interest from institutional investors and highlight the significance of current market conditions.
