Spot Bitcoin exchange-traded funds (ETFs) based in the United States saw a notable increase in investor interest on July 6, driven by Bitcoin’s recent drop below $54,000 just days earlier on July 4.
According to Farside Investors, inflows into spot Bitcoin (BTC) ETFs reached their highest level in a month, totaling $143.1 million. Leading this surge was the Fidelity Wise Origin Bitcoin Fund (FBTC), attracting $117 million. The Bitwise Bitcoin ETF (BITB) followed with $30.2 million in net inflows, while the ARK 21Shares Bitcoin ETF (ARKB) and VanEck Bitcoin Trust (HODL) ETFs received $11.3 million and $12.8 million respectively. In contrast, the Grayscale Bitcoin Trust (GBTC) experienced an outflow of $28.6 million.
Despite recent market volatility, the substantial inflows into these ETFs indicate that institutional investors and large buyers are seizing the opportunity presented by lower Bitcoin prices to accumulate more BTC.
Hunter Horsley, CEO of Bitwise Asset Management, highlighted his team’s efficiency in acquiring Bitcoin at minimal cost, less than half a basis point. He expressed optimism about Bitcoin’s future, emphasizing that current market conditions are advantageous for both new and existing investors. “The outlook for Bitcoin has never been stronger. This week presents a buying opportunity for those who have yet to invest,” he remarked.
During the first week of July, BITB saw inflows exceeding $66 million, boosting its total Bitcoin holdings to over 38,000 BTC.
Peter Schiff, a prominent Bitcoin critic, commented on the resilience of Bitcoin ETF investors amid market fluctuations. He noted their steadfastness in holding assets without signs of panic. “There’s no indication of panic so far. A much larger Bitcoin drop would likely be needed before they capitulate,” Schiff observed, predicting a potential sell-off that could prompt such a reaction.
Following the transfer of 47,229 Bitcoin by the collapsed Japanese crypto exchange Mt. Gox, valued at approximately $2.71 billion, Bitcoin’s price fell to $55,200 on Coinbase. This transaction marked Mt. Gox’s largest move since May, contributing to market movements.
For more insights into the intersection of finance and cryptocurrency, visit our magazine: “Could a financial crisis end crypto’s bull run?”