Investors are flocking to Bitcoin exchange-traded funds (ETFs) as the cryptocurrency's price surged 7% to over $66,000. On May 15, spot Bitcoin ETFs in the US saw a massive inflow of $303 million, the highest in two weeks. This influx is attributed to the release of US inflation data, which met expectations, leading institutional investors to turn bullish.

Fidelity's FBTC fund led the way with $131 million in inflows, its highest since March 26. Bitwise's BITB fund also saw a significant inflow of $86 million, while Grayscale's GBTC fund received $27 million after four months of outflows. Additionally, Millennium Management, a prominent hedge fund, disclosed a $2 billion spot Bitcoin ETF portfolio, making it the largest holder of IBIT and FBTC. This portfolio comprises $844.2 million in BlackRock's IBIT, $806.7 million in Fidelity's FBTC, $202 million in Grayscale's GBTC, $45.0 million in Ark's ARKB, and $44.7 million in Bitwise's BITB.

The surge in ETF inflows coincided with a significant price increase for Bitcoin, which tapped $66,567 during early trading in Asia. The asset has gained 15% over the past fortnight, bringing it within 10% of its all-time high. The US Consumer Price Index (CPI) data release, which came in lower than expected, has increased the likelihood of the Federal Reserve reducing rates and injecting liquidity into markets, benefiting high-risk assets like crypto.

This influx of institutional investment is a significant sign of growing confidence in Bitcoin and the cryptocurrency market as a whole. As more investors turn to Bitcoin ETFs, it will be interesting to see how this impacts the market's trajectory. With the Federal Reserve's potential rate reduction and liquidity injection, the stage is set for a continued surge in crypto prices.