On July 6, Spot Bitcoin ETFs, also known as exchange-traded funds, saw a significant increase in investments following a dip in Bitcoin prices below $55,000 during the U.S. July Fourth holiday. The data shows that a total of $143.1 million flowed into these investment vehicles. Leading the way is the Fidelity Bitcoin ETF (FBTC) with $117 million in inflows. The Bitwise Bitcoin ETF (BITB) followed closely behind with $30.2 million in investments, contributing to its growing holdings, which now consist of over 38,000 Bitcoins.
Additionally, other ETFs such as ARKB and HODL also saw substantial contributions of $11.3 million and $12.8 million, respectively. However, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $28.6 million, deviating from the overall positive trend in the market.
Hunter Horsley, the CEO of Bitwise Asset Management, shared insights on the strategic acquisitions of Bitcoin by his team at very low costs, emphasizing their operational efficiency. He mentioned that they were able to purchase Bitcoin at less than half of one basis point of cost, resulting in over $30 million in inflows for BITB in a single day. Throughout the week, BITB received over $66 million in investments and now holds more than 38,000 Bitcoins for investors. Horsley remains optimistic about Bitcoin’s future, considering the recent price drop as an opportunity for new investors to enter the market.
Despite the short-term fluctuations in the market, the first week of July demonstrated a positive trend with BITB’s inflows surpassing $66 million. This continuous investor engagement indicates a strong belief in the long-term value of Bitcoin. The recent drop in Bitcoin’s price below $55,000 on July 5 can be attributed to developments involving the defunct exchange Mt. Gox. A significant amount of BTC, valued at around $2.6 billion, was moved to a new wallet as Mt. Gox prepares for a substantial $9 billion payout.
As of the current moment, the price of Bitcoin stands at $56,826, a level not seen since February when the cryptocurrency was reaching new all-time highs. This price point reflects the market’s reaction to recent events and investor sentiment towards Bitcoin’s future.