Bitcoin’s institutional momentum hit new heights this week, with U.S. spot ETFs absorbing a massive $2.75 billion in inflows as BTC surged to a new all-time high of $111,970. This marks a nearly fivefold increase from the previous week’s $608 million, according to data from Farside Investors.
The strong ETF inflow suggests investor confidence is returning in force. On May 23 alone, net ETF inflows reached $211.7 million, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charge by adding $430.8 million—its eighth consecutive day of inflows. However, not all funds benefitted: Grayscale’s GBTC continued to lose ground with $89.2 million in outflows, while ARK’s ARKB saw $73.9 million exit.
The surge in interest coincides with Bitcoin’s sharp rally past $109K on May 21, followed by its climb to new record territory. Despite this bullish momentum, sentiment has slightly cooled. The Crypto Fear & Greed Index fell from 78 (Extreme Greed) to 66 (Greed), showing a more measured market outlook as BTC consolidates above $110,000.
May is now on pace to break ETF inflow records. With five trading days remaining, $5.39 billion has already flowed into Bitcoin ETFs—just short of November 2024’s $6.49 billion monthly record.
On-chain metrics back up the bullish case. According to CryptoQuant’s Crypto Dan, indicators such as funding rates and short-term holder activity suggest the market is far from overheated. Low leverage, low profit-taking, and healthy inflows suggest Bitcoin could continue climbing.
Institutional demand is increasingly the dominant force in this cycle. Unlike past bull runs driven by retail hype and social media buzz, this rally is marked by steady inflows from hedge funds, asset managers, and public companies. Matrixport notes that the absence of retail mania signals a maturing market dynamic, with Bitcoin now viewed as a long-term strategic asset.
Strategy, the largest corporate BTC holder, continues to expand its position. The firm recently announced plans to raise $2.1 billion through a Series A Perpetual Preferred Stock offering, potentially to fund further Bitcoin purchases. According to Bitcoin Treasuries data, 204 institutions now hold BTC, including 11 new public companies in the last month alone.
As BTC solidifies its role as a macro hedge and strategic asset, the influx of institutional capital through ETFs is reshaping market structure—and could continue propelling prices higher in the weeks ahead.
