Bitcoin price is rising rapidly due to strong performance of stock exchange funds

The price of bitcoin (BTC) is rising fast after it was announced that stock market funds had a great day yesterday. In total, Exchange Traded Funds (ETFs) saw no less than $378 million inflow. Even more special is Grayscale’s GBTC fund, which saw money flow in rather than out for the first time since the ETFs launched. The news sent bitcoin up 8% to $64,000.

Bitcoin price rises due to strong ETF performance

The bitcoin ETFs did excellently yesterday, and that is reflected in the rate. While the coin was worth $59,000 24 hours ago, it has now risen to around $64,000. Dozens of altcoins are also benefiting from bitcoin’s strong performance. The entire crypto market has increased in size by 7%; that amounts to a whopping $160 billion.

The good performance of the bitcoin ETFs is in stark contrast to the previous week, when they still saw money leaving at a rapid pace. The absolute low was reached on May 1, when an outflow of no less than $560 million took place. That the influx is so high two days later is therefore all the more special.

The absolute winner of the eleven listed funds is Fidelity’s FBTC fund. This attracted a whopping $103 million in investments. Also special is Grayscale’s ETF, the GBTC fund. This already existed before the launch of the ETFs, in the form of a normal fund with billions under management. When it was renamed an ETF, the fund started to empty rapidly. But now, for the first time since the ETF launches, the fund is up.

End of long-term outflow?

Yesterday, Grayscale saw a whopping $63 million in investments coming in. This could mark the end of the 80-day streak of outflows. If this is the case, this could be very positive for the bitcoin price.

Previously it was GBTC fund the main person responsible for the total outflow of the ETFs. This had to be compensated by, among other things, BlackRock’s IBIT fund. But if this compensation is no longer necessary, the total net inflow will be even higher. Previously, a high net inflow caused the bitcoin price to rise sharply.

Also, the upward momentum now being generated could spell the end of the alleged post-halving dip what we’ve been dealing with lately. As with the launch of the ETFs, the bitcoin price fell shortly after the halving that took place on April 20.

In addition to bitcoin, several altcoins are on the rise. The best performing are the Shiba Inu dog-themed cryptocurrencies. Dogecoin (DOGE), floki (FLOKI), dogwifhat (WIF) and shiba inu (SHIB) are up 22%, 17.5% 15.8% and 10.5% respectively.

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