Bitcoin Spot ETFs Witness Month-High Inflow Following Latest Market Downturn

Bitcoin prices have fallen to multi-month lows over the past week, resulting in a poor start to the third quarter of 2024. Meanwhile, Bitcoin spot ETFs (exchange-traded funds) appear to have benefited from the recent price drop, having a strong week in terms of capital flows.

Huge amounts of money have flowed into Bitcoin investment products despite the flagship cryptocurrency’s lackluster performance, according to the latest data.

$238 Million Flowed Into U.S. Bitcoin Physical ETF Over Past Week

On Friday, July 5, the Bitcoin Spot ETF recorded net inflows of over $143 million, its largest net inflows since June 6, roughly a month ago. Coinglass DataThe bulk of the capital inflow came from Fidelity’s FBTC.

A closer look at the data shows that only four of the 11 Bitcoin spot ETFs saw inflows, totaling $172 million, with roughly 80% of that going into Fidelity’s FBTC fund. Bitwise (BITB), VanEck (HODL) and Ark21Shares (ARKB) accounted for the rest of the inflows on Friday.

Grayscale’s GBTC saw outflows of about $29 million, while the remaining funds did not see significant inflows. Ultimately, the inflows marked a strong end to the week and a complete reversal from the consecutive days of outflows leading up to the July 4th holiday.

According to data from Coinglass, the U.S. bitcoin spot ETF saw net inflows of $238.4 million last week, suggesting that institutional investors are stashing away funds despite the leading cryptocurrency’s recent sell-off.

Recent Post to X On the platform, Bitwise CEO Hunter Horsley said the company’s portfolio management team efficiently acquired Bitcoin at a cost of less than half a basis point, meaning transactions cost less than 0.005% of the purchase amount.

Horsley also highlighted that asset management firm Bitwise currently holds over 38,000 Bitcoin for investors.

The outlook for Bitcoin has never been brighter, and for many who haven’t invested in it yet, this week is an opportunity to buy on the dip.

Bitcoin Price Overview

At the time of writing, Bitcoin’s price is approaching $60,000 and trading at around $58,133. This reflects a price increase of about 3% in the past 24 hours. On a weekly basis, however, the leading cryptocurrency is still down more than 5%.

The price of BTC breaks above $58,000 on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from Shutterstock, chart from TradingView


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