Bitcoin Witnesses Record Capital Inflows as Short-Term Whales Reap Profits

Bitcoin enthusiasts appear to be shrugging off last week’s outflows from US exchange-traded funds, with the largest cryptocurrency climbing back above $70,000 again. Meanwhile, other cryptocurrencies saw a surge in their price, with Bitcoin gaining as much as 11.1% to $71,016.

Unprecedented Capital Inflows

Bitcoin, the world’s leading cryptocurrency, is currently experiencing a surge in capital inflows, reaching historic levels as highlighted by Ki Young Ju, CEO of CryptoQuant.

In a recent tweet, Ju highlighted the remarkable surge in short-term Bitcoin whales, including spot ETF buyers, who have collectively accrued a staggering 16% unrealized profit, amounting to a total of $16.3 billion. 

Last week almost $900 million was pulled from those ETFs, reflecting continual outflows from the Grayscale Bitcoin Trust, alongside a slowdown in subscriptions for offerings from industry giants like BlackRock Inc. and Fidelity Investments.

Earlier Glassnode bitcoin saw a net inflow of 4.4 billion in volume. This surge in capital inflows underscores the growing interest and confidence in Bitcoin among institutional and retail investors alike. 

Spot ETFs: Empowering Investor Access

Ju’s insights shed light on the significant impact of spot ETFs on the crypto industry, acknowledging their role in facilitating access to Bitcoin for a broader range of investors. 

As per QCP Capital’s recent reports a remarkable surge in client demand for Bitcoin (BTC) spot exchange-traded funds (ETFs) at the wealth desks of major banks. This surge is accompanied by a notable uptick in requests for structured products like Accumulators and FCNs (Financial Contracts for Differences), signaling a growing appetite for cryptocurrency investment among institutional investors.

The rise in demand for BTC spot ETFs comes amidst a backdrop of growing institutional adoption and mainstream acceptance of cryptocurrencies as legitimate investment assets.