Bitcoin (BTC) ETFs Roar Back With a Net Inflow of $422.5M, BlackRock's IBIT Leads the Charge

After a brief pause mid-week, U.S. Spot Bitcoin ETFs roared back on May 1 with a net inflow of $422.5 million, signaling renewed institutional interest.

After a brief pause mid-week, U.S. Spot Bitcoin ETFs experienced a strong rebound on May 1, with a net inflow of $422.5 million. This signals renewed interest from institutional investors in the world’s largest cryptocurrency.

According to data from Farside Investors, BlackRock’s IBIT led the inflows with a massive $351.4 million, while Fidelity’s FBTC and Bitwise’s BITB added $29.5 million and $38.4 million, respectively. In contrast to the ongoing trend of consistent outflows, Grayscale’s GBTC also posted a modest $16 million inflow.

The BTC ETFs encountered a lull on Monday with a combined outflow of $56.3 million. The outflow on April 30 indicated unusual dampening of institutional interest, which some saw as a threat to the ongoing rally.

However, the rally continued strongly this week with BTC price climbing to $96,744 at the time of writing, with intraday highs touching $97,360. This is the highest level BTC prices have surged since Feb 22, earlier this year.

The resurgence in BTC ETF inflows, coupled with BTC price momentum, has reignited discussions about the cryptocurrency recapturing the coveted $100,000 mark in the near term.

BTC Price In For Key Resistance

The sustained interest from institutional investors, possible regulatory backing, and the broader adoption of Bitcoin ETFs are driving the BTC prices as well. The inflows on May 1 suggest a growing confidence in Bitcoin’s long-term prospects, even as the broader market grapples with regulatory uncertainties and macroeconomic factors.

However, the BTC order book shows a significant liquidity concentration around $97,000, marking a key resistance level. Analysts suggest that this resistance could define the price trend for the next few days. If Bitcoin clears this roadblock, $100K wouldn’t seem too far-fetched. A recent Matrixport report even hinted at a potential BTC rally to $106K if it breaks through the crucial resistance.

The US Spot BTC ETFs have seen unprecedented inflows recently, with the total cumulative flow reaching $39 billion within one and a half years of their existence, as per the data from Farside Investors.

As Bitcoin continues its upward trajectory, the crypto community is closely watching ETF flows and price movements for signs of the next significant breakout.