Spot Bitcoin exchange-traded funds (ETFs) based in the United States saw a notable surge in investments on July 6, following a recent drop in Bitcoin’s price below $54,000 on July 4.
According to Farside Investors, spot Bitcoin (BTC) ETFs experienced their highest net inflows in a month, totaling $143.1 million. This influx of funds reflects strong investor interest following the recent decline in Bitcoin’s market value.
Leading the inflows was the Fidelity Wise Origin Bitcoin Fund (FBTC) with $117 million, followed by the Bitwise Bitcoin ETF (BITB) with $30.2 million. Additionally, the ARK 21Shares Bitcoin ETF (ARKB) and VanEck Bitcoin Trust (HODL) ETFs received $11.3 million and $12.8 million in inflows, respectively.
In contrast, the Grayscale Bitcoin Trust (GBTC) saw a net outflow of $28.6 million during this period.
Despite market volatility, the significant inflows into these ETFs indicate that institutional investors and large-scale buyers view the dip in Bitcoin prices as an opportunity to accumulate assets at lower costs.
Hunter Horsley, CEO of Bitwise Asset Management, emphasized his team’s effective strategy in acquiring Bitcoin at minimal costs. He expressed optimism about Bitcoin’s future prospects, highlighting the current market conditions as favorable for both new and existing investors. “The outlook for Bitcoin is exceptionally positive. This week presents an ideal chance for those without exposure to enter the market,” he noted.
During the first week of July, BITB alone attracted inflows exceeding $66 million, pushing its total Bitcoin holdings above 38,000 BTC.
Peter Schiff, a well-known critic of Bitcoin, offered his perspective on the resilience of Bitcoin ETF investors amid market fluctuations. Despite recent challenges, Schiff noted the steadfast commitment of these investors to hold onto their assets without signs of panic. “There’s no indication of panic so far. It would likely require a significant drop in Bitcoin prices before they reconsider,” Schiff commented. He also predicted the possibility of a major sell-off leading to capitulation among Bitcoin holders in the near future.
Recently, Bitcoin’s price fell to $55,200 on Coinbase following a transfer of 47,229 Bitcoin by the collapsed Japanese crypto exchange Mt. Gox. The transaction, valued at approximately $2.71 billion at current rates, marked Mt. Gox’s largest movement of funds since May.
For more insights, see our magazine article on whether a financial crisis could bring an end to the current bullish trend in cryptocurrencies.