Bitcoin ETFs See $143M Inflows Despite Market Downturn
The recent downturn in Bitcoin’s value has become an appealing opportunity for investors in Exchange-Traded Funds (ETFs) who have seized the chance to capitalize on the dip. Bitcoin Spot ETFs saw a notable surge in net inflows, totaling $143.1 million on July 6, marking their highest monthly inflow to date, as reported by Farside Monitoring.
A surge in interest in Bitcoin ETFs followed the price drop, with July 6 witnessing a record $143.1 million inflow into Bitcoin spot ETFs, the largest monthly net entry. This surge in investments came on the heels of a substantial decline in Bitcoin’s value, dropping below $54,000 on July 4.
Among the various ETFs, the Fidelity ETF (FBTC) led the market with inflows of $117 million, closely followed by Bitwise (BITB) with $30.2 million. ARK Invest (ARKB) and ProShares (HODL) also saw substantial inflows of $11.3 million and $12.8 million, respectively.
Conversely, the Grayscale Bitcoin Trust (GBTC) experienced a contrasting trend with a net outflow of $28.6 million, diverging from the positive momentum observed in other Bitcoin spot ETFs.
According to Hunter Horsley, CEO of Bitwise Asset Management, their team effectively acquired BTC at competitive prices, expressing optimism about Bitcoin’s future. He mentioned, “The outlook for Bitcoin has never been better. For many of those who have yet to get exposure, this week is an opportunity to buy the dip.”
This positive sentiment is reinforced by the continuous growth in holdings of the BlackRock Bitcoin spot ETF, which exceeded 38,000 BTC following inflows of over $66 million in the initial week of July.
Even Peter Schiff, a well-known Bitcoin skeptic, acknowledged the resilience of Bitcoin ETF investors, noting, “So far, there are no signs of panic. It will likely take a much larger drop in BTC before they eventually capitulate.”
In conclusion, the recent market volatility has spurred institutional investors to capitalize on buying opportunities, indicating a sustained confidence in the long-term potential of Bitcoin.
