Bitcoin's Recent Surge Driven by ETF Inflows and Short-Term Holders

By: Eva Baxter

Bitcoin's Recent Surge Driven by ETF Inflows and Short-Term Holders

This week has witnessed a significant rise in Bitcoin (BTC) activity. As BTC prices surged from around $60,000 to $66,000, new trends have emerged among different types of Bitcoin holders. Long-term holders (LTHs) have maintained strong positions, with their accumulated BTC growing by 70,000 from an April low. Meanwhile, an influx in short-term holders (STHs), who have held their BTC for less than 155 days, saw their supply increase by 20,000 BTC.

A major driver of this trend has been substantial inflows into US Bitcoin exchange-traded funds (ETFs). Data from Farside indicates that US Bitcoin ETFs saw a $257.3 million inflow, marking their fourth consecutive day of such activity. BlackRock’s IBIT ETF reported the largest single-day inflow of $93.7 million, while Fidelity's FBTC ETF continued its strong performance with an additional $67.1 million, totaling $12.4 billion in ETF inflows.

Conversely, Hong Kong-based BTC ETFs experienced outflows totaling $13.2 million in a single day, contributing to a combined outflow of $29.9 million from digital asset ETFs. These diverse trends in different geographical markets underscore the mixed investor sentiment surrounding BTC.