The US spot Bitcoin exchange-traded funds (ETFs) saw nearly $295 million in net inflows on July 8th. This represented significant buying activity, which was last seen in June, when Bitcoin was hovering above $70,000. Major funds have appeared to have made a comeback despite Bitcoin struggling with downward pressure.
BlackRock’s IBIT Tops ETF Inflows
The latest surge in investment comes as these vehicles kicked off July on a strong note. In the second week of July, they opened positively again, reflecting a renewed interest in the market. SoSoValue’s latest data highlighted the significant inflows into major ETFs. BlackRock’s IBIT dominated the charts with $187.21 million, the highest in a month, while Fidelity’s FBTC recorded $61.54 million. Even Grayscale’s GBTC attracted $25.07 million, followed by Bitwise’s BITB with $11.05 million. Ark Invest and 21Shares’ ARKB garnered $8.44 million, and VanEck’s HODL received $1.59 million. In contrast, some ETFs such as Invesco and Galaxy Digital’s BTCO, Valkyrie Digital Assets’ BRRR, Franklin Templeton’s EZBC, WisdomTree’s BTCW, and Hashdex’s DEFI recorded no flows for the day.
Exaggerated Concerns?
The inflows come as Bitcoin continues to face intense selling pressure as a result of repayments linked to the defunct Mt. Gox exchange and the German government transferring hundreds of millions in BTC to exchanges last month. CoinShares suggested that this resultant dip has served as a buying opportunity for investors, as demonstrated by the inflow of $441 million in digital asset investment products over the past week. However, the concerns of potential liquidity dumps from the German government and Mt. Gox creditors continue. Despite this, experts suggest that the Bitcoin market can absorb it. It is estimated that the combined impact to lead to a drop of 10.5% to around $47,000-$48,000 level.
In addition to the recent inflows into Bitcoin ETFs, investors are also eyeing special offers in the cryptocurrency market. Binance is currently offering a free $600 exclusive welcome offer for new account registrations through a specific link. This provides an additional incentive for individuals looking to enter the cryptocurrency space or expand their investment portfolio. Additionally, BYDFi Exchange has a limited offer for 2024, providing up to $2,888 as a welcome reward. By registering and opening a 100 USDT-M position for free, investors can take advantage of this promotion.
Overall, the significant inflows into Bitcoin ETFs indicate a renewed interest and confidence in the cryptocurrency market, despite ongoing challenges. With major funds like BlackRock’s IBIT leading the way, investors are actively participating in the market and taking advantage of potential buying opportunities. As the market continues to evolve and adapt to external pressures, it will be interesting to see how these investment trends develop in the coming weeks and months.