Bitcoin investment inflows hit $1B as long-term holders accumulate

Inflows into Bitcoin (BTC) investment products topped $1 billion last week, with the total year-to-date inflows reaching approximately $14.6 billion, according to CoinShares. This surge in investment is largely attributed to institutions and long-term investors increasing their exposure to spot Bitcoin ETFs.

For the week ending May 24, Bitcoin exchange-traded products (ETPs) registered $1.01 billion in inflows. The total inflows for all cryptocurrency investment products reached $1.05 billion, marking an all-time record of $14.9 billion for 2024 so far.

Capital flows for crypto investment products. Source: CoinShares

CoinShares’ “Digital Asset Fund Flows Weekly” report, published on May 28, highlighted a 28% increase in weekly trading volumes, reaching $13.6 billion. Crypto funds now manage $98.43 billion in assets.

The recent surge in buying and price increases is primarily driven by market anticipation of spot Ethereum ETFs approval in the United States. Despite Bitcoin underperforming Ether (ETH) post-approval, continued inflows into spot Bitcoin ETFs are seen as significant.

Data from Farside Investors shows that institutions invested nearly $1.057 billion in spot Bitcoin ETFs between May 20 and May 24. Grayscale’s IBIT saw outflows subside dramatically to just $20.5 million for the week.

Spot Bitcoin ETF Flows table. Source: Farside Investors

Bitcoin price remains in a range

Popular analyst Daan Crypto Trades said that when the BTC 8-hour chart is zoomed out over several months, it reveals that price action has been trading in a wide range stretching from $59,095 to the March 14 all-time high above $73,800.

According to popular analyst Daan Crypto Trades, Bitcoin’s price action over the last several months has been within a wide range, stretching from $59,095 to the March 14 all-time high above $73,800. Minor deviations below this range were “quickly retaken,” he noted on May 27:

“$BTC Has done nothing but range similar to previous consolidations this cycle.”

BTC/USD 8-hour chart. Source: Daan Crypto Trades

Analyst Rekt Capital observed that Bitcoin’s recent recovery above $70,000 formed “another local top.” He predicts Bitcoin will likely continue consolidating between $60,000 and $70,000, and posted this chart on May 28.

BTC/USD daily chart. Source: Rekt Capital

Independent trader John Albert noted on May 28 that Bitcoin has been trading in a tight range for the past few weeks. He suggested that BTC could see “further gains” if it breaks above the upper limit of $68,000, currently acting as immediate resistance.

Long-term holders and Whales Accumulate

Institutional and long-term investors are capitalizing on Bitcoin’s low volatility to increase their holdings. Glassnode’s “The Week On-chain” report, published on May 28, indicated that long-term investors are re-accumulating coins for the first time since December 2023.

Glassnode analysts found that the aggregate supply from long-term holders (LTHs) has dropped by 12,000 BTC to 85,800 BTC/month. This is a significant decrease from a peak of 519,000 BTC/month in late March, signaling a “cooling-off period” and a return to accumulation patterns.

Bitcoin LTH position change. Source: Glassnode

Trader and analyst Ali Martinez also noted increased buying activity by whales in recent days, further supporting the accumulation trend.

BTC whale activity. Source: Ali Martinez

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.