First time reading? I’m Jordan, and this is The Bitcoin Minimalist. Every Tuesday & Thursday, we scour 100s of sources to bring you need-to-know Bitcoin insights.

Today we’re covering:

• Record inflows for Bitcoin ETFs,

• Institutional demand drives Bitcoin price,

• Fidelity advises 1-5% Bitcoin allocation,

• And everything else you need to know.

—Jordan

ETFS

Bitcoin ETFs See Surge in Inflows Amid Market Resurgence

Record Inflows: U.S. spot Bitcoin exchange-traded funds (ETFs) experienced their second-highest daily inflow ever on Tuesday, with over $886 million. This marks the most significant single-day haul since March, driven by renewed demand and Bitcoin's price resurgence.

June 5th Data: The flows of June 5 were followed by a $500 million in inflows yesterday. Flows can be tracked live here.

Consistent Inflows: The ETFs have now recorded 17 consecutive days of inflows, suggesting a "second wave" of demand. Leading the pack was Fidelity's Wise Origin Bitcoin Fund with $378.7 million, followed by BlackRock's iShares Bitcoin Trust at $274.4 million.

Stacking Bitcoin: The spot Bitcoin ETFs currently hold over $60 billion in BTC.

Comparative Data: The highest daily intake for these funds was on March 12, when they took in a record $1.04 billion, preceding Bitcoin's all-time high of $73,679.

Grayscale's Turnaround: The Grayscale Bitcoin Trust also saw an inflow of $28.2 million, its seventh since converting to a spot ETF in January, marking a shift from its year-long outflows.

WHAT WE’RE WATCHING

🌐 Robinhood is acquiring Bitstamp for $200 million in an all-cash deal. Expected to close by mid-2025, this acquisition aims to enhance Robinhood's global crypto presence and attract institutional clients. Bitstamp, founded in 2011, is one of Europe's largest and most regulated Bitcoin exchanges.

📈 Robert Kiyosaki predicts Bitcoin will reach $350,000 by August 2024. The "Rich Dad, Poor Dad" author cites his lack of faith in U.S. leadership and endorses Bitcoin as a safeguard against poor economic policies. His forecast requires a 380% surge from Bitcoin's current price near $71,000.

🔍 Stephan Livera claims short-term analyses can misrepresent Bitcoin's performance. For instance, gold advocate Peter Schiff focused on a brief price drop rather than long-term growth. Recent transaction fee spikes due to protocol updates also sparked misleading claims. Long-term perspectives show Bitcoin's resilience and proper transaction management through methods like the Lightning Network.

📈 Bitcoin ETFs have attracted $2.4 billion in inflows over three weeks. On June 3, they saw $105 million in net inflows, with Fidelity’s ETF leading at $77 million. Experts link this surge to rising global liquidity and increased M2 money supply, which tends to drive Bitcoin prices higher.

🚀 Bitcoin options traders predict a breakout above $74,000 this month. Heavy buying activity of BTC calls, with June expiries, suggests strong bullish sentiment. A short squeeze could occur as $1.5 billion in shorts around $72,000 might be liquidated, pushing prices higher.

💡 Franklin Templeton CEO Jenny Johnson says Bitcoin investment is still in its early phase. She expects a second wave of institutional funds to drive significant growth.

FIDELITY

Fidelity Exec Advocates for Bitcoin Allocation in Investment Portfolios

Bitcoin Allocation Advice: Matt Horne, Fidelity Investments' head of digital asset strategists, recommends that investors include Bitcoin in their portfolios. He suggests an allocation of 1-5% regardless of their investment thesis.

Rationale and Market Sentiment: Horne emphasizes the importance of understanding Bitcoin's potential and positioning accordingly. He notes that a small allocation mitigates risk while allowing for potential upside, reflecting a growing institutional interest in digital assets.

Institutional Inflows: The surge in Bitcoin’s popularity among institutional investors is evident, with Bitcoin funds experiencing $148 million in inflows during the last week of May. The total inflows for Bitcoin funds in May reached nearly $2 billion, with 2024 seeing over $14 billion in inflows into Bitcoin funds and exchange-traded products.

Market Dynamics: The introduction of spot Bitcoin ETFs in the US has significantly influenced the market, propelling Bitcoin’s price to over $70,000. Positive sentiment remains strong among ETF and ETP investors, as shown by the outflows from short Bitcoin funds.

POLL

TUESDAY’S POLL RESULTS

Are ETFs bad or good for Bitcoin?

Bad - 17.6%

Good - 82.4%

Good - “Makes it possible for institutional investment in bitcoin” - James

Good - “Opens BTC up to millions of new investors...that's a good thing” - Chris

IN THE LOOP

📊 In Q1 2024, spot bitcoin ETFs held 840,000 BTC valued at $56 billion. Retail investors dominate ownership, holding 80% of these ETFs. Institutional adoption is starting slowly, with hedge funds and advisors making initial small allocations. This trend is seen as bullish for Bitcoin's future growth.

🪞 Bitcoin can catalyze personal transformation, as seen in stories like a former gambler who became a Bitcoin Maximalist. Max Keiser emphasizes Bitcoin's role beyond finance, suggesting it reveals deeper truths about ourselves. He contrasts Bitcoin’s empowering potential with the fleeting appeal of AI and other vices, advocating for its transformative societal impact.

🏭 Bitcoin miners with favorable power contracts are seen as potential M&A targets, says JPMorgan. U.S. listed miners, with access to large power supplies, attract hyperscalers and AI firms. Financial pressure post-halving may make miners more receptive to deals, potentially reshaping the mining landscape.

📉 The Bank of Canada cut its benchmark rate by 25 basis points to 4.75%, starting the G-7 monetary easing cycle. This move, aimed at supporting economic growth amid falling inflation, could benefit Bitcoin prices by reducing competition for investor capital. Bitcoin remains steady at $70,500.

💼 Riot Platforms' stock fell over 6% after short-seller Kerrisdale Capital targeted it. The hedge fund accused the Bitcoin miner of cash burn and exploiting shareholders. Kerrisdale, long on Bitcoin as a hedge, criticized Riot's ATM funding strategy. This follows Riot's recent hostile takeover attempt of Bitfarms.

🌍 The Human Rights Foundation granted 10 BTC to 13 global projects. This $704,740 funding will support education, privacy, and financial freedom initiatives. Key projects include a privacy-focused exchange, educational programs in India and the Middle East, and decentralized communication tools.

VIDEO

Unchained, a $6 billion financial services company, has released a new Bitcoin commercial. The commercial promotes Bitcoin as a solution for financial security amid inflation concerns. Check it out for yourself HERE.

CHARTS & DATA

Original Rainbow Chart - Bitcoin is just above the accumulate phase of the original Bitcoin rainbow chart.

All-time High - The market is quiet, but Bitcoin is only around 3.5% away from it’s all-time high of $73,825.

MORE FROM OUR COMPANY

The Bitcoin Minimalist is run by Bitbo. Browse our most popular pages across our sites:

Bitbo Dashboard: View live price action, monitor on-chain data, and track key economic indicators - all for free.

Bitbo Charts: Useful Bitcoin charts, featuring on-chain metrics and other Bitcoin analysis.

Bitcoin Tools: An exclusive list of the best Bitcoin tools.
Carefully vetted and maintained by Bitbo.

Bitbo Store: Shirts, hats, hoodies, mugs, and other merch for Bitcoiners.

Bitbo News: Bitcoin-only news. No spam or fluff. Just need-to-know Bitcoin news.

Halving Clock: Track the countdown to the Bitcoin halving with our Bitcoin halving clock.

Bitcoin Treasuries: Track all companies/ETFs/countries holding Bitcoin on their balance sheets.