Spot Bitcoin exchange-traded funds (ETFs) based in the United States saw a notable surge in inflows on July 6, spurred by Bitcoin’s recent drop 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.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the influx with $117 million, followed by the Bitwise Bitcoin ETF (BITB) which recorded $30.2 million in net inflows. The ARK 21Shares Bitcoin ETF (ARKB) and VanEck Bitcoin Trust (HODL) ETFs received $11.3 million and $12.8 million inflows respectively.
Conversely, the Grayscale Bitcoin Trust (GBTC) witnessed a net outflow of $28.6 million.
Despite recent market volatility, these substantial inflows into ETFs indicate that institutional investors and large buyers are seizing the opportunity presented by lower Bitcoin prices to accumulate BTC.
CEO Hunter Horsley of Bitwise Asset Management emphasized their efficient acquisition of Bitcoin at a cost of less than half a basis point. He also expressed optimism about Bitcoin’s future, characterizing the current market environment as an opportune moment for both new and existing investors to consider buying. “The outlook for Bitcoin has never been more positive. For those not yet invested, this week offers a chance to capitalize on the downturn,” he remarked.
During the first week of July, BITB attracted inflows exceeding $66 million, boosting its total Bitcoin holdings to over 38,000 BTC.
Peter Schiff, a well-known critic of Bitcoin, commented on the steadfastness of Bitcoin ETF investors despite recent market fluctuations. Schiff noted their resilience in holding onto their assets without showing signs of panic. “There’s no indication of panic yet. It would likely require a substantial Bitcoin drop before they reconsider,” he observed. Schiff also anticipated a potential significant sell-off in the near future, possibly leading to capitulation among Bitcoin holders.
In related news, Bitcoin fell to $55,200 on Coinbase following a transfer of 47,229 Bitcoin by the collapsed Japanese crypto exchange Mt. Gox to a new wallet address, marking its first major transaction since May.