Bitcoin ETFs are experiencing a significant surge, driving what many analysts predict to be a parabolic rise in the cryptocurrency’s price. With an influx of around $1.83 billion, 11 ETFs purchased 25,729 Bitcoins during the trading week of June 3 to June 7 — about eight times more than the 3,150 new BTC mined during the same period, according to HODL15Capital.
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The number of Bitcoins bought in just one week almost matched the total for all of May, which was 29,592 BTC. This marks the biggest buying week since mid-March when Bitcoin reached its current all-time high of $73,679.
Since launching in January, these 11 ETFs have experienced a net inflow of $15.69 billion, even factoring in a $17.93 billion net outflow from the Grayscale fund. This brings their total assets under management (AUM) to approximately $61 billion. The ETFs collectively hold about 5.2% of all Bitcoins in circulation.
Nate Geraci, President of ETF Store, noted in a June 9 post on X that the AUM of bitcoin ETFs is about 60% of that of the country’s gold ETFs, even though gold ETFs have been around for 20 years, while bitcoin ETFs have only been around for five months.
This recent surge in flows occurred amidst a renewed demand for digital asset-focused investments, with a $2 billion influx in May alone. This boost reflects growing investor comfort with these assets and a perception that regulators are becoming more receptive to them.
Analyst Insights on Bitcoin
Bitcoin reached a peak of $71,093 on June 5, spurred by a surge of funds into U.S. Bitcoin ETFs. This was the first time since May 21 that the asset surpassed $71,000.
BTC’s price remains steady above $69,000, and analysts suggest that an increase in spot bitcoin inflows could push the price even higher. The cryptocurrency has struggled to break through its current peak, as its price “is heavily influenced by macroeconomic factors and geopolitical events.”
Crypto analysts believe Bitcoin is on the brink of entering a “parabolic run,” driven by the rising inflows into U.S. Bitcoin ETFs. According to Farside Investors, spot Bitcoin ETFs have experienced positive inflows for 19 straight days, with approximately $1.7 billion coming in just this week. If this trend continues, Bitcoin’s price could surpass its all-time high of $73,835 set in March.
Analysts say that among the factors influencing the price, the ongoing inflow of funds into ETFs will cause BTC to break through key resistance levels and unlock its price potential.
The pseudonymous trader and analyst Moustache noted that the flagship cryptocurrency is about to cross a key resistance line on the five-day chart.
“Every 4 years, this crossover signals the final parabolic move for Bitcoin. 2012-2016-2020-2024,” the analyst told his followers in a post on X, adding that “the 2024 crossover is just around the corner.”
Sharing similar sentiments, independent trader Jelle posted a weekly BTC chart on X, showing the price battling the psychological resistance level of $72,000.
The price “keeps retreating” to this barrier, the trader stated, adding that “with massive ETF demand and neutral funding,” it’s only “a matter of time” before the price climbs higher.
Analysts highlight the importance of this trend, noting that sustained positive flows into spot Bitcoin ETFs could propel the cryptocurrency past its historical highs. The influx of funds, coupled with increasing investor confidence and favorable regulatory sentiments, sets the stage for a potential breakout in Bitcoin prices.
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