Bitcoin ETF Investors Seize Buying Opportunity as Inflows Exceed $140M on Friday
Following the Independence Day holiday, American traders were met with a significant drop in the value of bitcoin as they resumed trading. The cryptocurrency experienced a notable decline of over 10% from its pre-holiday levels, marking a historic plunge in its price. This decision was made based on data from Exchange-Traded Funds (ETFs).
According to data compiled by Farside Investors, spot bitcoin ETFs based in the United States witnessed net inflows amounting to $143.1 million on Friday. This influx of funds represented the highest level of inflows seen in at least the past two weeks.
Among the notable performers in this scenario was Fidelity’s Wise Origin Bitcoin Fund (FBTC), which attracted $117.4 million in net new investments. Other funds that experienced net inflows included the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL). On the other hand, the Grayscale Bitcoin Trust (GBTC), known for its high fees, continued to see outflows of assets.
In terms of price movements, bitcoin has shown a slight recovery after its sharp decline from nearly $61,000 on Wednesday to below $54,000 early Friday. Presently, the cryptocurrency is trading around $56,800, reflecting a 6% decrease from the levels seen a week ago and a substantial 23% drop from its peak above $73,500 in mid-March.
The recent downward trend in bitcoin prices has been attributed to concerns surrounding a potential increase in the cryptocurrency’s supply. This unease stems from the actions of trustees overseeing the distribution of 140,000 bitcoins to former customers of the now-defunct Mt. Gox exchange. Additionally, reports indicate that the German government has initiated the sale of at least a portion of the thousands of bitcoins it holds, further contributing to the market sentiment.
Overall, the cryptocurrency market has been experiencing fluctuations, with bitcoin facing challenges that have impacted its value. Traders and investors continue to monitor these developments closely as they navigate the evolving landscape of digital assets and their associated market dynamics.
