Bitcoin experienced a significant price surge today, reaching $63,261.61, marking a 6.63% increase in just one day. This sudden rise is particularly noteworthy as Bitcoin’s price had also seen a slight increase of 0.60% the previous week, indicating a potential reversal from the bearish trend it had been experiencing.
The surge in Bitcoin’s price followed the release of disappointing US non-farm payroll (NFP) data, which sparked speculation that the Federal Reserve may adopt a more dovish stance. This news, coupled with a reversal in the seven-day trend of US Bitcoin Exchange-Traded Fund (ETF) withdrawals, seemed to boost investor confidence and contribute to the upward trend.
Interestingly, the Grayscale Bitcoin ETF (GBTC) experienced its first inflows since its launch in January 2024. On Friday, the fund received $63 million, marking a significant turning point after a 77-day period of net outflows. This development aligns with previous reports from Crypto News Flash.
The positive sentiment extended to the broader ETF market, with spot Bitcoin ETFs seeing a net inflow of $378 million on the same day. The Fidelity ETF (FBTC) stood out with significant single-day net inflows of $103 million, while BlackRock’s iShares Bitcoin ETF (IBIT) experienced a smaller but still positive influx of $12.7 million.
The appeal of US spot Bitcoin ETFs is not limited to domestic investors. Hong Kong-based Yong Rong Asset Management, for instance, became the largest ETF holder by purchasing $38 million worth of IBIT. This highlights the growing interest in US spot Bitcoin ETFs around the world.
In Hong Kong specifically, cryptocurrency-based ETFs have experienced remarkable growth. As of May 3, three Bitcoin spot ETFs in the region held approximately 4,225 BTC, with a total net asset value of $250 million. Additionally, three Ethereum spot ETFs held a combined total of over 16,000 ETH, valued at $48.52 million, indicating the increasing interest of investors in Hong Kong’s cryptocurrency market.
Overall, the recent surge in Bitcoin’s price, coupled with the inflows into Grayscale’s Bitcoin ETF and the growing interest in US spot Bitcoin ETFs internationally, suggests a renewed optimism and confidence in the cryptocurrency market.