Bitcoin returns to above $100,000, institutional funds continue to flow into ETFs

On May 8, Bitcoin (BTC) broke through the $100,000 mark, sparking heated discussions in the market again. This rise was not driven by retail investors, but by institutional investors' continued increase in investment, and the inflow of funds from spot Bitcoin ETFs became the main driver.

According to the latest data from Farside Investors, on May 7, spot Bitcoin ETFs recorded a cumulative net inflow of $142.3 million. Alex Obchakevich, founder of Obchakevich Research, said this reflects that institutions such as hedge funds and asset management companies are steadily increasing their holdings of Bitcoin through regulated channels. He pointed out: "These inflows clearly show that institutional interest in Bitcoin is continuing to increase."

ETF fund inflows are strong, and institutional bullish sentiment is heating up

Among many Bitcoin ETFs, ARK 21Shares (ARKB) led with a single-day inflow of $54 million, followed by Fidelity's FBTC ($39 million) and BlackRock's IBIT ($37 million). Arkham Intelligence tracking data shows that BlackRock purchased 86 bitcoins in a transaction on May 7, worth about $8.4 million.

The trend has not stopped. On May 8, Bitcoin ETFs once again attracted more than $117 million in funds, with IBIT leading with $69 million, and FBTC and ARKB recording net inflows of $35 million and $13 million, respectively. Obchakevich pointed out that this round of capital inflow was driven by the sentiment of the technology market: "The current correlation between Bitcoin and the Nasdaq index has reached 0.75, indicating that Bitcoin prices are increasingly affected by the performance of technology stocks." He added that this institutional buying trend can be traced back to May 2, when IBIT recorded a huge inflow of up to $675 million. If there is no major macro or geopolitical shock, this trend is likely to continue on May 8-9. Grayscale Funds Outflow, Structural Problems Emerge It is worth noting that the mainstream Bitcoin ETFs as a whole have shown a net inflow of funds, but the Grayscale Bitcoin Trust Fund (GBTC) continues to suffer from capital outflows. In this regard, Obchakevich explained that GBTC's high management fee - about 1.5% - is the main reason for the loss of funds, and investors are turning to lower-cost alternatives. "GBTC's capital outflow is not only due to high fees, but also closely related to the current global political and economic uncertainties." He pointed out that factors such as geopolitical conflicts such as tensions between India and Pakistan and changes in tariff policies have exacerbated investors' concerns about the stability of GBTC.

Looking to the future: Institutional forces may continue to support the Bitcoin market

Based on current data, institutional investors are continuing to increase their holdings of Bitcoin through ETF channels, becoming a solid support for its price. Although the structural problems of Grayscale Fund may cause disturbances to the market in the short term, the overall ETF inflow trend is strong, showing that Bitcoin is gradually gaining recognition from the mainstream financial market.

If the macroeconomic and geopolitical situation is relatively stable in the future, Bitcoin is expected to rise steadily driven by institutional funds, further consolidating its position as a major global asset class.