Bitcoin ETF returns with $2.4 billion inflow in three weeks

Source: Blockchain Knight

BTC ETFs are gaining momentum, with reports of positive flows of up to $105 million on Monday, bringing the cumulative inflows over the past three weeks to nearly $2.4 billion.

Experts believe the inflows are due to increased global liquidity, which can boost BTC prices through improved market sentiment.

The BTC ETF market rally continues to gain momentum, with $105 million in inflows on June 3.

This marks 15 consecutive trading days of positive flows for BTC ETFs, and brings cumulative inflows to $2.4 billion, according to on-chain data platform SpotOnChain.

Fidelity’s FBTC recorded inflows of up to $77 million (over 1,110 BTC) on Monday.

Meanwhile, Grayscale’s GBTC and BlackRock’s IBIT recorded zero net flows on the same day. The Bitwise ETF BITB recorded $14 million in inflows, while Ark21Shares' ARKB ETF recorded a whopping $10 million in positive inflows.

The surge in inflows coincides with an increase in global liquidity.

BTC analyst Willy Woo stressed that the relationship between BTC prices and M2 expansion reflects broader market sentiment and economic conditions.

A high M2 expansion indicates loose monetary policy and an increase in money supply. In response, BTC's price tends to rise as investors seek other assets for potential returns.

It is worth noting that the price of BTC usually reacts positively to increases in the money supply and inflation concerns. This is because investors view BTC as a store of value against traditional fiat currencies such as the US dollar, which may depreciate due to inflation.

Bitfinex analysts pointed out in a market update on Monday that BTC ETFs have seen an average of $136 million in inflows per day over the past two weeks.

They said: "This is 4 times the $32 million daily selling pressure from miners, and BTC is in an accumulation period."

The analysts also emphasized that the correction phase may be nearing its end. They attributed the recent drop in gold prices from $73,777 to the selling activities of long-term holders.

The report shows that long-term holders have begun to accumulate BTC again for the first time since December 2023.

Since the BTC halving on April 20, investor confidence has risen, strengthening the bullish argument. This can be seen in the surge in BTC's realized capitalization, which is close to $600 billion.

The BTC Realized Cap indicator shows the real value of BTC based on the price BTC last moved. It provides a unique perspective on market dynamics, investor behavior, and historical trends in the BTC ecosystem.