Throughout the first half of May, the U.S. BTC ETFs bought a total of nearly 26,700 BTC, while miners only added 7,200 new BTC to the market. The figures from May 1 to May 15 indicate that there is a considerable interest in Bitcoin from both institutions and from people purchasing through authorized investment products.
This comes after the fourth Bitcoin halving event in April 2024 that reduced the block reward from 6.25 BTC to 3.125 BTC. Since only 7,200 BTC were mined during the first 15 days of May, the gap between demand and supply has caught the attention of both the financial and crypto sectors.
Under normal circumstances, the daily issuance of Bitcoin is about 480, yet ETFs have been adding an average of 1,700 BTC every single day since the BTC halving day. The main contributors to inflows were ETFs belonging to BlackRock and Fidelity, who have a strong daily record of purchases.
Moreover, investors poured 16,000 BTC, in part, into BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). According to recent transactions, investors in U.S. Bitcoin ETFs are resuming their accumulation. Based on Hodl15 Capital’s data, US Bitcoin ETFs bought back 30,052 and 26,729 BTC in April and May, respectively.
The beginning of 2024 saw the market heading up. During January, February, and March, the exchange received 33,546 BTC, 116,561 BTC, and 65,456 BTC in inflows. Yet, May saw a sharp decrease in sentiment, as ETFs sold off 6,074 BTC. Although the selling slowed in March, 9,843 BTC were still moved.
Though things may be unstable now, institutions are likely to maintain interest over the following year. In October and November 2024, Bitcoin inflows were 76,823 and 71,570, respectively, proving that market players strongly believed in Bitcoin in the coming new year.
With the inflows of April and May in 2025, a major change could be approaching. In addition to recent improvements in the momentum of crypto markets, the bull-bear indicator has turned bullish, suggesting a new bull run could begin.
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