Bitcoin ETFs See Influx of Over $1 Billion as Price Hits $66,000
Investor interest in Bitcoin exchange-traded funds (ETFs) has surged in the past three trading days, with more than $1 billion flowing into these funds. This uptick in investment coincided with Bitcoin’s price reaching $66,000, signaling strong bullish sentiment in the market.
Massive Inflows into Bitcoin Spot ETFs
On Tuesday, Bitcoin spot ETFs witnessed significant inflows, with total inflows surpassing $422.5 million – the highest level in a month. Leading the inflows was BlackRock’s iShares Bitcoin Trust (IBIT) with $260.2 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) also saw substantial inflows of around $61.1 million. Interestingly, there have been no outflows from Bitcoin ETFs over the past three trading days.
Learn More: How to Trade Bitcoin ETFs: A Step-by-Step Approach
| Date | ETF A | ETF B | ETF C | Total Inflows |
|---|---|---|---|---|
| July 12, 2024 | 120.0 | 115.1 | 28.4 | 422.5 |
| July 15, 2024 | 117.2 | 36.1 | 15.2 | 300.9 |
| July 16, 2024 | 260.2 | 61.1 | 17.3 | 422.5 |
Cryptocurrency whales have also been actively accumulating Bitcoin. Data from CryptoQuant on July 15 revealed that approximately 10,800 BTC and $656.64 million flowed into Bitcoin accumulation addresses.
In addition, CryptoQuant CEO Kiyoung Ki shared insights into Bitcoin holder behavior, noting that 85,000 BTC have been accumulated in the past 30 days, primarily held in custodial wallets with minimal outflows. This behavior indicates a mix of panic selling and strategic buying in the market.
Market Concerns Surrounding Mt. Gox
Recent movements by the now-defunct exchange Mt. Gox, transferring a large amount of Bitcoin to a new address, have raised concerns among investors. However, experts, including Zhu, argue that the market may be exaggerating the potential impact of Mt. Gox redemptions.
“Since 2023, $224 billion worth of Bitcoin has been sold, but the price has increased 350%. Even if Mt. Gox’s $3 billion sold on Kraken, it would only be equivalent to what has been achieved in this bull cycle. 1% of market capitalization growth, which is a controllable amount of liquidity,” Mr. Joo explained.
Galaxy Research Director Alex Thorne also believes that the selling pressure from Mt. Gox may be less significant than anticipated, citing detailed reviews of the bankruptcy filing and creditor discussions.
Read more: Top Cryptocurrency Bankruptcies: What You Need to Know
Thorne suggests that the terms of payment for creditors may lead them to hold onto assets due to capital gains tax implications. Even if a portion of the assets were sold, the impact on the market would likely be manageable.
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