Bitcoin ETFs in the US draw more than $1 billion in net inflows in a week amid bearish market sentiment
US spot Bitcoin exchange-traded funds (ETFs) have seen a significant surge in net inflows, surpassing $1 billion in just a week, despite the prevailing bearish sentiment in the crypto markets. This surge comes at a time when the Crypto Fear and Greed Index has plummeted to its lowest level since January 2023.
According to data from Alternative.me, the Crypto Fear and Greed Index dropped to 25, indicating “extreme fear” among investors in the cryptocurrency market, particularly concerning Bitcoin. This decline coincided with Bitcoin’s struggle to break the $60,000 threshold, hovering between $57,000 and $58,000 for an extended period.
Despite the overall negative market sentiment, the US spot Bitcoin ETFs have demonstrated resilience. SoSoValue data revealed that these ETFs experienced a remarkable week, with a substantial $310 million daily inflow recorded on Friday, marking the highest influx in the past five weeks.
Leading the daily inflows were BlackRock’s IBIT with $120 million and Fidelity’s FBTC with approximately $115 million. This surge in daily inflows hasn’t been seen since June 5, when investors injected $488 million into these funds, as per SoSoValue’s statistics.
While the US Bitcoin funds attracted significant investments, the German government made notable moves by transferring $3 billion worth of Bitcoin to various crypto platforms and addresses linked to over-the-counter trading desks. However, it remains uncertain whether the government is offloading its Bitcoin holdings.
Despite ongoing selling pressure from major entities and whales, most crypto investors maintain a bearish outlook on Bitcoin’s short-term future. Attention has now shifted to Mt. Gox creditor repayments, with Wall Street potentially eyeing this opportunity to capitalize on market dips.
