BTC ETFs Gain Momentum with $105 Million Inflows on Monday, Driving Total Inflows to Nearly $2.4 Billion in the Past Three Weeks.
Experts believe that the influx of funds is due to increased global liquidity, which can boost BTC prices by improving market sentiment.
The BTC ETF market rebound continues to strengthen, with $105 million in funds flowing in on June 3rd.
According to data platform SpotOnChain, this marks the 15th consecutive day of positive flows for BTC ETFs and brings the total inflows to $2.4 billion.
Fidelity’s FBTC recorded a massive $77 million (over 1,110 BTC) influx on Monday.
Meanwhile, Grayscale’s GBTC and BlackRock’s IBIT reported zero net flows on the same day. Bitwise ETF BITB saw $14 million in inflows, while Ark21Shares’ ARKB ETF recorded a significant $10 million in positive inflows.
The surge in fund inflows coincides with the increase in global liquidity.
BTC analyst Willy Woo emphasizes that the relationship between BTC price and M2 expansion reflects broader market sentiment and economic conditions.
High M2 expansion indicates loose monetary policy and an increase in money supply. In response, the price of BTC tends to rise as investors seek alternative assets for potential returns.
It is worth noting that BTC prices typically respond positively to increases in money supply and concerns about inflation. This is because investors view BTC as a hedge against traditional fiat currencies like the USD, which may depreciate due to inflation.
In its market update on Monday, Bitfinex analysts pointed out that BTC ETFs have seen an average daily inflow of $136 million over the past two weeks.
They stated, “This is four times the selling pressure of miners, with $32 million sold daily. BTC is in the accumulation phase.”
The analysts also emphasized that the correction phase may be nearing its end. They attributed the recent drop in the gold price from $73,777 to selling activity by long-term holders.
The report shows that long-term holders have started accumulating BTC for the first time since December 2023.
Since the BTC halving on April 20th, investor confidence has increased, strengthening the bullish sentiment. This can be seen from the surge in BTC’s realized capitalization, which is close to $600 billion.
The BTC Realized Cap indicator provides a unique perspective on the market dynamics, investor behavior, and historical trends within the BTC ecosystem.
