Record-breaking Bitcoin Exchange-Traded Funds (ETFs) surpass previous highs
Crypto Markets Heat Up in May: A Look at Bitcoin, Ethereum ETFs, and More
The Bitcoin and Ethereum ETF Mania
May 2021 saw a surge of institutional interest in the crypto market, with Bitcoin and Ethereum ETFs taking center stage. A whopping $5.2 billion in net inflows was recorded for ETF products, thanks to Bitcoin's all-time high.
According to Binance Research's June 5 report, Bitcoin reached an astounding high of $111,970 on May 22. Simultaneously, strong inflows into ETFs elevated the high to levels not seen since November 2021.
Market Volatility and Liquidations
Despite market volatility, investor interest remained robust. Amid the trade agreement signed between the U.S. and the U.K., and the suspension of European Union digital asset regulations, a combined total of approximately $1.183 billion in positions was liquidated.
Regulatory Boost
Regulatory developments provided a significant boost to ETF interest. The GENIUS Act, a U.S. Senate-backed bill aiming to establish the first regulatory framework for stablecoins in the country, and Hong Kong's strengthened legal footing for stablecoins helped fuel interest in ETFs.
BlackRock vs. Grayscale
In May, BlackRock's iShares Bitcoin Trust (IBIT) absorbed nearly all net inflows, while Grayscale's GBTC fund saw $320 million in outflows. This shift signaled a significant advantage for BlackRock in the competition.
DeFi Outshines Bitcoin
While Bitcoin was growing by 11.1%, the decentralized finance (DeFi) sector surged by 19%. This growth propelled the total value locked in DeFi protocols to its highest level since February, overshadowing Bitcoin's achievements.
Corporate Bitcoin Purchases
Institutional investor interest extended beyond ETFs. As of May, 116 publicly traded companies were holding a total of 809,100 BTC. The positive sentiment in the regulatory environment and record prices triggered corporate purchases. Some companies, like Trump Media, were reported to have bought Bitcoin worth billions to boost investor interest.
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Andriamiento significativo para la inversión en ETFs de criptomonedas provino de los avances regulatorios, como el proyecto de ley GENIUS del Senado de los Estados Unidos, que busca establecer el primer marco regulatorio para stablecoins en el país, y el fortalecimiento legal de los stablecoins en Hong Kong.
Tecnología y finanzas se han unido para impulsar la inversión en Andorra, con rendimientos excepcionales de la sector financiero descentralizado (DeFi) en mayor medida que Bitcoin.
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