6 months ago
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Lower-than-expected April CPI data (0.3%) boosts markets on hope of Fed rate cuts and increased liquidity.
Spot Bitcoin exchange-traded funds (ETFs) in the US experienced 302.97 million net inflows on May 15, as the price of Bitcoin soared to 62,000. It was the highest level of inflow for ETFs since May 3. Interestingly, on the same day, the US Consumer Price Index (CPI) data was also released, acknowledging institutional investors’ victory.
Photo: SoSoValue
Fidelity’s FBTC fund emerged as the frontrunner, attracting $131 million in inflows, the highest single-day inflow for the fund since March 26. Bitwise Asset Management’s BITB fund had a notable performance, recording $86 million inflow, higher than the previous high on March 4th.
BlackRock’s IBIT fund remains stable at zero inflows for the third consecutive day. Financial experts explain that the zero inflows for large-scale funds like IBIT are common occurrences and do not have any alarming downside or potential risk.
Grayscale’s flagship GBTC fund, previously facing outflows over the past four months, was apparently revived, with inflows of $27 million. This reversal could indicate a shift in the sentiments of investors who have been investing in the biggest Bitcoin investment resources globally.
Millennium’s $2 Billion Bitcoin ETF Holdings
Adding further fuel to the fire, recent US Securities and Exchange Commission (SEC) filings revealed that Millennium Management, a prominent hedge fund with over $64 billion in assets under management, holds a substantial $2 billion portfolio in various spot Bitcoin ETFs. This disclosure sparked a witty remark from James Seyffart, a renowned ETF analyst. “It’s only retail traders buying the Bitcoin ETFs,” he noted.
Millennium’s portfolio boasts holdings across several major providers: $844.2 million in BlackRock’s IBIT, $806.7 million in Fidelity’s FBTC, $202 million in Grayscale’s GBTC, $45.0 million in Ark’s ARKB, and $44.7 million in Bitwise’s BITB. Notably, this makes them the single largest holder of both IBIT and FBTC.
The May 15 deadline for institutional investors to file their quarterly 13F reports with the SEC for positions held at the end of Q1 further bolstered the positive sentiment. This deadline marked the closing window for investors to acquire most spot Bitcoin ETFs within the first quarter.
Bitcoin Soars to $66,000 on Positive CPI Data
As Bitcoin ETFs witnessed renewed interest, Bitcoin experienced a significant price surge. According to CoinMarketCap, Bitcoin prices surged 6.50% over the past 24 hours, reaching a high of $66,350 during early Asian trading on May 16. This marks Bitcoin is just 10% far from its all-time high of $73,750 on March 14.
The positive market reaction is driven by the release of the April US CPI data, which came in lower than expected at 0.3%. This report, a key indicator of inflation, has increased optimism about the Federal Reserve potentially reducing interest rates and injecting more liquidity into the market – a scenario historically favourable for high-risk assets like cryptocurrencies.
