Crypto prices have taken a hit recently, causing investors to shy away and triggering a wave of liquidations. Despite this, the drop in bitcoin’s price to levels not seen in months has attracted some investors looking to capitalize on the discounted prices of various cryptocurrencies, resulting in a significant influx of $441 million into crypto-related products.
The majority of these funds, amounting to $398 million, flowed into bitcoin products, representing 90% of the total investments in crypto products. In particular, US spot BTC ETFs received $294.9 million in net inflows on July 8, marking the highest amount in over a month compared to the $217.78 million recorded on June 6.
Among the various funds, Blackrock’s IBIT fund stood out with the highest net inflows of $180 million, followed by Fidelity’s FBTC with $61.54 million. Despite its reputation for experiencing net outflows when other ETFs are attracting funds, Grayscale’s GBTC received $25.08 million. Bitwise’s BITB observed $11.05 million, Ark Invest and 21Share’s ARKB $8.44 million, and VanEck’s HODL $1.59 million. Other US-based ETFs did not record significant net inflows or outflows.
The influx of funds indicates that investors are taking advantage of the market dip and maintaining a bullish outlook despite the turbulence experienced in the crypto market in June. Factors such as bitcoin’s declining value due to Mt. Gox repayments and German government selling activities added to the selling pressure, prompting many bitcoin holders to liquidate their holdings.
A report from CoinShares highlighted how investors are seizing the opportunity to acquire assets at discounted prices in anticipation of a potential increase in value. The report noted that while bitcoin received $398 million in inflows, representing 90% of total inflows, investors also diversified their investments across a wider range of altcoins.
In particular, Solana saw $16 million in inflows last week, bringing its year-to-date (YTD) inflows to $57 million, making it the best-performing altcoin in terms of fund flows. Ethereum sentiment appears to be improving, with $10 million in inflows, although it remains the only ETP to have experienced net outflows YTD.