Bitcoin Bets Hit Peak of $37B as ETF Inflows Set New Record

As a researcher studying cryptocurrency markets, I’ve observed that the previous record-breaking peak of approximately $37 billion in mid-March was surpassed by bitcoin’s fresh highs at around $73,700.

As a financial analyst, I’ve noticed an intriguing development in the bitcoin exchange-traded fund (ETF) market recently. Specifically, over the past 18 days, these funds have recorded unprecedented inflows, with The Block reporting this as a new record. Amongst the major players, BlackRock’s iShares Bitcoin Trust (IBIT) attracted approximately $340 million in net inflows on Thursday, according to preliminary data from SoSovalue. On the other hand, Ark Invest’s ARK Bitcoin ETF (ARKB) experienced nearly $97 million in net outflows during the same period.

Approximately $5.2 billion in new open interest has been recorded since Monday, according to Coinglass data. Simultaneously, Bitcoin prices have surged from $68,500 to $71,000 during the same time frame. Amongst the total $37.7 billion in bets, Chicago Mercantile Exchange (CME) holds the largest stake with approximately $11 billion, while Binance follows closely with $8 billion.

The large difference between the number of stocks bought and sold in the market, as indicated by the high long-short ratio, points to a predominantly bullish outlook among investors. According to the data, this ratio increased noticeably from 0.94 on Thursday to over 1 early on Friday.

When the ratio of long positions to short positions is greater than 1, it signifies that more investors have taken long positions than short ones. This implies a bullish outlook for the asset in question. Conversely, if the number of short positions exceeds the number of long positions, resulting in a ratio less than 1, it suggests bearish sentiments among investors towards the asset.

From my perspective as a researcher studying the cryptocurrency market, there is a widespread belief among traders that Bitcoin‘s value will continue to increase over the next few weeks. This optimistic outlook stems from the growing investor sentiment of taking on more risk and the positive regulatory expectations that are emerging.

“According to Ruslan Lienka, the CEO of crypto exchange YouHodler, Bitcoin has the potential to surpass the resistance levels between $71,000 and $73,000 in the coming weeks and establish new record highs. This bullish outlook is fueled by market optimism, particularly due to the anticipated interest rate reductions in both the US and Europe which could lead to increased investment in risk assets.”

As a crypto investor observing the market trends, I’ve noticed an increase in trading volume for meme stocks like GameStop and other less-rated penny stocks. This surge in activity suggests that investors are becoming more willing to take on risks.