Bitcoin rose 0.25% in the past 24 hours to $71,133.9 by 08:45 ET (12:45 GMT). The token stabilized after breaking out of a $60,000 to $70,000 trading range this week, ending a trough it had fallen into since mid-March.
Bitcoin near record highs as ETF inflows surge
The world’s biggest cryptocurrency was now about $3,000 away from a record high hit in March, benefiting from weakness in the dollar as traders priced in interest rate cuts by the Fed.
U.S.-listed spot exchange traded funds of the token saw a spike in inflows this week, bringing total year-to-date inflows to about $15 billion. Spot Bitcoin ETFs also saw four straight weeks of inflows in May.
The approval of spot Bitcoin ETFs in U.S. markets was a key point of support for the token this year, with Bitcoin hitting a record high on the back of increased institutional inflows.
This trend appeared to be gaining momentum once again, especially in the face of lower U.S. interest rates, which present a more accommodative environment for crypto markets.
A rate cut by the Bank of Canada on Wednesday, and anticipation of a widely expected rate cut by the European Central Bank on Thursday also drummed up optimism over lower interest rates.
World no.2 crypto Ether rose 1.1% to $3,847.12, remaining close to recent two-month highs as the token also benefited from hype over a spot Ether ETF.
The Securities and Exchange Commission had in May approved major U.S. exchanges to list the spot ETFs, and is now set to engage with fund managers over the approval of the products.
Broader altcoins were mixed, but were sitting on gains this week as a swathe of weak U.S. economic data saw traders increase their bets on a September rate cut.
SOL, ADA and XRP fell between 0.1% and 0.5%, while among memecoins, SHIB and DOGE rose 1.4% and 0.5%, respectively.
Speaking of meme coins, institutional allocations to these assets have surged by more than 300% this year, reaching nearly $300 million in April, according to a report from crypto exchange Bybit.
This surge, Bybit said, signals a growing interest from professional investors in the sector.
DOGE and SHIB were particularly popular among institutional investors due to their substantial spot-market liquidity. It’s important to note that these holdings were tracked solely on Bybit and do not account for holdings on other exchanges.
Among the new meme coins, Solana‘s BONK/USD stood out, attracting over $75 million in institutional investments, making it the most favored newcomer of the year. However, by May, meme coin holdings had dropped by almost half to $125 million as institutions took profits.
As of May 1, DOGE held the largest share of meme coin holdings among both retail and institutional investors. Institutions allocated 36% of their meme coin investments to DOGE, compared to 24.5% by retail investors.
Source: Cryptocurrency - investing.com
