Following a notable price drop, United States-based Spot Bitcoin exchange-traded funds (ETFs) saw a significant surge in inflows on July 6. Bitcoin’s price fell below $54,000 on July 4, creating a prime buying opportunity for ETF investors.
Record Inflows Amid Price Correction
According to Farside Investors, Spot Bitcoin ETFs experienced their highest net inflows in a month, with $143.1 million flowing in. The Fidelity Wise Origin Bitcoin Fund (FBTC) led the way with $117 million in inflows. Other ETFs also saw substantial investments: the Bitwise Bitcoin ETF (BITB) recorded a net inflow of $30.2 million, the ARK 21Shares Bitcoin ETF (ARKB) had $11.3 million, and the VanEck Bitcoin Trust (HODL) garnered $12.8 million. In contrast, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $28.6 million.
Institutional Investors Capitalize on Price Dip
Despite recent market turbulence, these inflows suggest that institutional investors and large-scale buyers are seizing the opportunity to accumulate Bitcoin at lower prices. Hunter Horsley, CEO of Bitwise Asset Management, emphasized his team’s efficiency in acquiring Bitcoin at minimal costs and highlighted the strong outlook for Bitcoin.
“The outlook for Bitcoin has never been stronger. For many who don’t yet have exposure, this week is a chance to buy the dip,” Horsley stated.
During the first week of July, the Bitwise Bitcoin ETF (BITB) registered inflows exceeding $66 million, increasing its total Bitcoin holdings to over 38,000 BTC.
Also Read: Steno Research Forecasts $6,500 ETH with Upcoming Spot ETFs
Investor Sentiment and Market Dynamics
Renowned Bitcoin critic Peter Schiff acknowledged the resilience of Bitcoin ETF investors amid market fluctuations. Despite the recent price drop, Schiff noted that these investors remain committed to holding their assets, showing no signs of panic. “So far, there’s no sign of panic. It will likely take a much larger drop in Bitcoin before they finally capitulate,” Schiff commented. He further predicted that a significant sell-off could occur soon, potentially leading to a capitulation among Bitcoin holders.
Bitcoin’s fall to $55,200 on Coinbase was partly attributed to the collapsed Japanese crypto exchange Mt. Gox transferring 47,229 Bitcoin, worth around $2.71 billion at current prices, to a new wallet address. This was Mt. Gox’s first major transaction since May.
