Bitcoin ETF Inflows Stay Strong As Wall Street Hopeful of Fed Rate Cuts

Highlights
- Fidelity led the pack with the highest inflows at $99 million on Monday.
- Hong Kong Bitcoin ETFs hold ~4,400 Bitcoins after going live last week.
- Fed rate cuts and ceasefire in Hamas-Israel bring fresh hopes to the market.
Bitcoin investors started the week on a positive note as US Bitcoin ETFs recorded net inflows of $217 million on Monday, May 6. This coincided with all three major Wall Street indices closing in positive territory, fueled by growing expectations of imminent Fed rate cuts.
Fidelity Leads the Bitcoin ETF Inflows
On May 6, Bitcoin spot ETFs witnessed substantial net inflows totaling $217 million, underscoring growing investor interest in cryptocurrency exchange-traded products. Among the notable contributors to this influx, Grayscale ETF GBTC recorded a single-day net inflow of $3.937 million, for the second consecutive day.
However, the inflows into the Grayscale Bitcoin ETF GBTC have dropped significantly from $64 million, as witnessed last Friday, May 3. Speaking on the development, Amrita Nandakumar, president of Vident Investment Advisory said:
“Now that the tide has turned from outflows to inflows, I think moving forward it’s gonna be harder to predict what direction the flows will go. I’ll be curious to see how closely that’s tied to the price to Bitcoin or how closely it’s tied to what other issuers of Bitcoin ETFs do to try to attract Grayscale investors.”
Fidelity ETF FBTC also saw significant activity, with a single-day net inflow of $99.1936 million. Additionally, Ark Invest and 21Shares ETF ARKB experienced a notable single-day net inflow of $75.6412 million, further highlighting the market’s appetite for exposure to Bitcoin through ETFs. On the other hand, the Hong Kong Bitcoin ETFs now hold over 3,400 Bitcoins after the first four days of going live for trading.
Hong Kong 🇭🇰 Bitcoin ETFs hold 4,388 #Bitcoin after 4 days👇 pic.twitter.com/uTuBt4FEVJ
— HODL15Capital 🇺🇸 (@HODL15Capital) May 6, 2024
The daily trading volume of these funds has witnessed a decline since its peak in March. In the last week, the total trading volume amounted to approximately $11 billion, marking a notable decrease compared to the first week of March, which recorded over $32 billion in trading volume.
Wall Street Recovery
On Monday, May 6 the Dow Jones Industrial Average rose by 176.59 points, or 0.46%, closing at 38,852.27. This marked the fourth consecutive session of gains for the 30-stock index. Meanwhile, the S&P 500 ended at 5,180.74, up by 1.03%, and the Nasdaq Composite reached 16,349.25, with a gain of 1.19%.
Stocks received a boost in early afternoon trading following an announcement from Hamas on Monday. The group accepted an Egyptian-Qatari cease-fire proposal aimed at ending the war with Israel.
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- USDH Launch Boosts Hyperliquid Amid Competitive Market Pressure
- SEC to Decide on Six Spot XRP ETF Applications in October
- Ripple Partners with Ondo Finance to Tokenize U.S. Treasuries on XRPL
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?