The Main Driver of Bitcoin’s Growth is Institutional Activity

Institutional investors have been actively increasing their Bitcoin holdings at prices above $100,000.

Last week, Bitcoin surpassed the $100,000 mark. The main driver of this growth was institutional activity, with continued investments through ETFs.

On May 7 alone, net inflows into spot funds totaled $142.3 million. The leader was the ARK 21Shares Bitcoin ETF (ARKB) with $54 million, followed by Fidelity ($39 million) and BlackRock ($37 million). According to Arkham Intelligence, the latter purchased 86 BTC for $8.4 million in a single transaction. On May 8, ETFs received another $117 million, including $69 million into BlackRock’s IBIT fund.

Analysts at Marsses noted steady interest from major players – the inflows indicate that hedge funds and asset managers are continuing to accumulate Bitcoin through regulated instruments.

Bitcoin’s growth is also linked to a strengthening correlation with the Nasdaq index (0.75) – positive index dynamics on May 8–9 supported the cryptocurrency.

The only fund with outflows was the Grayscale Bitcoin Trust (GBTC). Experts attribute this to its high fee (1.5%) and macroeconomic factors – investors are shifting to cheaper alternatives amid BTC volatility.

Analysis by Marsses suggests that the trend toward crypto accumulation will likely continue, barring any major geopolitical or economic shocks.

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