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Spot Bitcoin exchange-traded funds (ETFs) in the United States are on track for a historic month, driving Bitcoin to unprecedented all-time highs amid increasing institutional interest.
The US-listed spot Bitcoin (BTC) ETFs observed over $1.5 billion in total inflows across a two-day timeframe, including $608 million on May 21 and $934 million on May 22, according to information from Sosovalue.
A similar influx as seen in the previous two days would result in monthly inflows soaring to $6.68 billion, eclipsing the monthly record of $6.49 billion set in November 2024.
Related: German government missed a $2.3B profit after disposing of Bitcoin at $57K
ETF inflows contributed to Bitcoin reaching a new all-time high of $112,000 on May 22 before retreating to above $110,700 on May 23, marking a rise of over 19% in the last week, as per TradingView data.
The “strong” ETF inflows along with Bitcoin’s ascent to new all-time highs indicate an increasing demand from institutions and rising realized profits “without additional selling pressure,” commented Nexo dispatch editor Stella Zlatareva to Cointelegraph.
“Institutional investments, corporate balance sheet adjustments, and macroeconomic shifts come together to convey a clear message: Bitcoin is no longer merely an alternative — it’s evolving into the standard,” she further stated.
Recent spikes in ETF demand coincided with $1 billion worth of Bitcoin being drawn from Coinbase on May 9 — a move analysts interpret as an indicator of rising institutional interest.
Related: Exponential currency dilution: ‘You don’t hold sufficient crypto, NFTs’
Institutional inflows to elevate Bitcoin to $200,000 by 2025
The “structural” investments from institutions may enable Bitcoin to exceed the $200,000 “base case” before the conclusion of 2025, as per Bitwise’s head of European research, André Dragosch.
“Thus, the base case stands at $200,000, assuming the US government refrains from intervening. Should they step in, it could trend closer to $500,000,” Dragosch informed Cointelegraph, in reference to the US government’s proposal to conduct direct Bitcoin purchases via “budget-neutral” methods.
Bitwise’s “internal forecast” for 2029 predicts a $1 million Bitcoin valuation target, as Bitcoin’s market valuation will exceed the market cap of gold, recognized as the primary safe-haven asset, Dragosch elucidated.
Nevertheless, gold’s $22.3 trillion market valuation remains over ten times larger than Bitcoin’s $2.2 trillion, positioning BTC as the world’s fifth-largest asset, as indicated by CompaniesMarketCap data.
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