BlackRock, Fidelity Lead $257M Bitcoin ETF Surge, As Analysis Predicts $74,000 Comeback

The demand for Bitcoin BTC/USD exposure among U.S. investors continues to rise, with spot Bitcoin ETFs recording a fourth consecutive day of inflows on May 16.

What Happened: The total net inflow for the day reached $257.34 million, suggesting growing institutional interest in the leading cryptocurrency, according to data from SoSo value.

BlackRock’s iShares Bitcoin Trust IBIT led the surge with a net inflow of $93.70 million, followed by Fidelity’s Wise Origin Bitcoin Trust FBTC at $67.08 million.

Notably, Grayscale’s Bitcoin Investment Trust GBTC, the world’s largest Bitcoin fund, saw a more modest inflow of $4.64 million.

This bullish sentiment comes despite warnings from JPMorgan analysts who, in a recent report, stated that Bitcoin’s upside potential is limited.

They cited the slowdown in inflows into U.S. spot Bitcoin ETFs and waning interest in Hong Kong-based spot Bitcoin and Ether ETFs as reasons for their cautious outlook.

JPMorgan estimates the current Bitcoin production cost to be between $42,000 and $45,000, potentially capping significant price increases in the short term.

Also Read: Senate Votes To Overturn Controversial SEC Crypto Rule, But Will Biden Veto It?

Institutional Investors Remain Bullish On Bitcoin

However, the analyst warnings seem to be falling on deaf ears among some major institutional players.

QCP Capital, a leading crypto firm, expects Bitcoin’s price to revisit its November 2023 highs of $74,000.

They point to sizeable call option purchases (contracts that give the buyer the right, but not the obligation, to buy Bitcoin at a certain price by a certain date) as evidence of strong institutional demand.

QCP Capital also highlights the recent investments by large asset managers Millenium and Schonfeld, who allocated approximately 3% and 2% of their assets under management (AUM) to Bitcoin spot ETFs, respectively.

The evolving landscape of digital assets and the role of institutional investments in shaping market trends will be a focal point at Benzinga’s Future of Digital Assets event on Nov. 19.

This event promises to provide valuable insights into the future trajectory of digital assets, offering perspectives from leading industry experts on investment strategies and market developments.

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