Bitcoin (CRYPTO: BTC) climbed back above the key $80,000 level on Monday for the first time in three months, supported by renewed capital inflows and improving market sentiment.

Bitcoin ETF Inflows Fuel Price Surge

Data from DefiLlama shows $630 million flowed into spot bitcoin ETFs on the first day of May, extending a streak that helped make April the strongest month since October. The report also pegged Bitcoin's gain at 19% over the past month.

iShares Bitcoin Trust (NASDAQ:IBIT) pulled in $284.4 million in capital on May 1, followed by inflows of $213.4 million in Fidelity Wise Origin Bitcoin Trust (BATS:FBTC), and $88.5 million in ARK 21Shares Bitcoin ETF (BATS:ARKB). All these funds seek to track Bitcoin's price.

IBIT is the largest of the three ETFs, with assets under management (AUM) of $61.1 billion. FBTC and ARKB have AUM of $14 billion and $2.8 billion, respectively. ARKB charges a lower annual fee of 0.21% compared with 0.25% for iShares and Fidelity.

Max Kahn, CEO of Digital Wealth Partners, told DL News that ETF demand has become the key driver behind bitcoin's climb. He added that the inflows are "an increasingly important source of consistent buying pressure," supporting higher prices as long as institutional demand remains strong.

Traditional Finance Embraces Bitcoin ETFs

The increasing interest in Bitcoin ETFs is further underscored by Goldman Sachs’ significant investment, which recently revealed over $1 billion in cryptocurrency holdings through various spot Bitcoin funds, including IBIT and FBTC.

Billionaire hedge fund manager Paul Tudor Jones has previously stated that “Bitcoin is unequivocally the best inflation hedge that there is—more than gold,” emphasizing its unique scarcity due to its 21 million hard cap.

Institutional Support for Stablecoin Regulations

As the regulatory landscape continues to evolve, the recent backing of the Clarity Act by Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong marks a significant shift in institutional sentiment.

The finalized text, which aims to establish clearer guidelines on stablecoins, demonstrates the growing consensus among industry leaders. This development could bolster confidence in cryptocurrency regulations.

Benzinga Edge Stock Rankings indicate that IBIT, FBTC and ARKB maintain a strong price trend in the short term and a weak trend in the medium and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.

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