Bitcoin Experiences Unprecedented Influx of Capital as Short-Term Whales Profit Immensely

Bitcoin Sees Unprecedented Inflows of $16.3 Billion Despite ETF Outflows

Despite last week’s outflows from US exchange-traded funds (ETFs), Bitcoin enthusiasts are showing resilience as the largest cryptocurrency bounces back above $70,000. In addition, other cryptocurrencies have seen a surge in their prices, with Bitcoin gaining as much as 11.1% and reaching $71,016.

Bitcoin, the leading cryptocurrency in the world, is currently experiencing an unprecedented surge in capital inflows. Ki Young Ju, CEO of CryptoQuant, highlighted this historic level of capital inflows in a recent tweet. Short-term Bitcoin whales, including spot ETF buyers, have collectively gained an unrealized profit of 16%, totaling $16.3 billion.

However, there has been a decline in ETFs, with nearly $900 million withdrawn last week. This reflects the ongoing outflows from the Grayscale Bitcoin Trust and a slowdown in subscriptions for offerings from industry giants such as BlackRock Inc. and Fidelity Investments.

Earlier, Glassnode reported a net inflow of $4.4 billion in volume for Bitcoin. This surge in capital inflows demonstrates the increasing interest and confidence in Bitcoin among both institutional and retail investors.

The insights provided by Ju shed light on the significant impact of spot ETFs on the crypto industry. These ETFs play a crucial role in enabling a broader range of investors to access Bitcoin. QCP Capital’s recent reports indicate a remarkable surge in client demand for Bitcoin spot ETFs at major banks’ wealth desks. This surge is accompanied by an increase in requests for structured products like Accumulators and FCNs, signaling a growing appetite for cryptocurrency investment among institutional investors.

The rising demand for BTC spot ETFs aligns with the growing institutional adoption and mainstream acceptance of cryptocurrencies as legitimate investment assets.