As Bitcoin continues its upward trajectory, the trading volumes of Bitcoin Exchange-Traded Funds (ETFs) have surged to levels unseen in seven weeks. Daily volumes nearing $6 billion mark a resurgence not witnessed since late March, coinciding with Bitcoin's price nearing new highs for the month of May.

In a notable shift, institutional interest in Bitcoin is evidenced by the participation of nearly 1,000 United States firms in Bitcoin ETFs. According to data from research firm Santiment shared on X (formerly Twitter) on May 16, daily spot Bitcoin volumes have exceeded $5 billion.

This surge in ETF volumes harks back to a time around the peak of Bitcoin's price, when it reached its all-time high of $73,800. Santiment's data reveals that the seven largest U.S. spot ETFs collectively managed $5.65 billion in volume this week, marking the highest since March 24.

Santiment's observation that volume is "picking up major steam" signals a significant shift from a period where whale activity dominated onchain accumulation.

Hedge fund manager Thomas Kralow echoed this sentiment, regarding the surge in trading activity as a positive indicator for the market, expressing his bullish stance to X followers.

The positive momentum extends beyond ETFs, with inflows into spot ETFs remaining positive every day this week as of May 17. Even the Grayscale Bitcoin Trust (GBTC), previously associated with significant outflows, witnessed renewed interest, recording modest inflows totaling $27 million and $4.6 million for May 16 and 17 respectively, according to data from sources including United Kingdom investment firm Farside.

Moreover, form 13F filings reveal that in Q1, 937 U.S. firms had exposure to Bitcoin ETFs, a stark contrast to the 95 firms that showed interest in gold ETFs during a similar period after their launch.

Looking ahead, trading firm QCP Capital sees several factors aligning to support bullish continuation for Bitcoin. Notably, genuine institutional and sovereign adoption, combined with Bitcoin exiting its halving period, are cited as bullish indicators. QCP Capital highlights Bitcoin's resilience, with sharp v-shaped recoveries occurring whenever the price dipped under $60,000, suggesting it as a favorable buy-the-dip zone.

Amidst increasing bullish sentiment, there are calls for Bitcoin to reach new all-time highs, with projections extending to $95,000. At the time of writing, data from Cointelegraph Markets Pro and TradingView indicates Bitcoin attempting to breach overhead resistance toward $67,000 after hitting new May highs.