Bitcoins Resilience Linked to Institutional Demand as Crypto Fund Inflows Reach $7.5 Billion

From May 10 to May 16, the net inflow into cryptocurrency investment funds amounted to $785 million, compared to $882 million during the previous week, as stated in the CoinShares report.

This positive trend has now persisted for five consecutive weeks.

The total inflow since the beginning of the year reached a record $7.52 billion, fully recovering from the outflow experienced during the correction in February-March.

Assets under management (AUM) increased to $172.9 billion.

In Ethereum funds, inflows surged from $1.5 million to $205 million following the successful Pectra upgrade.

However, not all altcoins shared in the overall optimism, with Solana-based products seeing outflows of $0.89 million. Meanwhile, inflows into XRP and Sui continued, amounting to $1.4 million and $11.7 million, respectively.

Instruments linked to digital gold experienced a decrease in inflows, dropping from $867 million to $557 million. Analysts attributed this slowdown to «hawkish» signals from representatives of the Federal Reserve.

In the segment of American spot Bitcoin ETFs, inflows slowed to $603.7 million, down from $934.2 million the previous week.

According to QCP Capital, despite a recent pullback from $107,000, the price of Bitcoin remains within its recent range, supported by significant institutional interest.

Analysts believe that the momentum towards new highs since late January was driven by news of Metaplanet acquiring 1,004 BTC, with the subsequent correction likely a result of profit-taking by market makers.

Liquidation of long positions did not become prolonged due to continued inflows into spot Bitcoin ETFs.

Analysts highlighted that the price of Bitcoin has entered a rally mode amid a reduced risk appetite in global markets following Moody’s downgrade of the U.S. sovereign rating.

«This reinforces the positioning of digital gold as a capital preservation tool, which… could act as a long-term catalyst,» the report noted.

Experts observed that there remains a skew towards call options across all time frames, indicating «structurally bullish prospects» for the asset.

It is worth noting that on May 9, a record 9,739 BTC was withdrawn from the Coinbase exchange, marking the highest figure seen this year.

Previously, CryptoQuant indicated the absence of any signs suggesting «whale» sales of Bitcoin.