Bitcoin ETF Investments Reach Highest Level in Six Weeks at $422.5M
The exchange-traded funds (ETFs) in the U.S. that mirror bitcoin’s spot price have seen a resurgence in investor interest. On a single day this week, these 11 funds collectively attracted $422.5 million, marking the highest inflow since June 5. This inflow trend has been ongoing for the past seven days, as reported by Farside Investors and Coinglass.
Among these funds, BlackRock’s IBIT saw the largest inflow, surpassing $260 million in a single day. FBTC followed with $61.1 million, while other funds like GBTC, DEFI, and BTCW each received less than $30 million. In just the last three days, these funds have managed to accumulate over $1 billion, showcasing investors’ confidence in the potential of bitcoin’s price.
Bitcoin’s price has notably rebounded by 23% to reach $65,800 from a recent low near $53,500 on July 5, according to CoinDesk data. In addition to the ETF inflows, this price recovery could be attributed to various factors. These include the diminishing selling pressure from Germany’s Saxony state, an increased likelihood of pro-crypto candidate Donald Trump winning the U.S. presidential election on Nov. 4, and Trump’s appointment of BTC advocate and Ohio Republican senator James David Vance as vice president.
Vance, who has been a supporter of bitcoin and other digital assets since 2021, recently introduced a draft of crypto-related legislation. This move has not gone unnoticed in the political arena, with FRNT Financial remarking on the growing political significance of crypto and its integration into the Republican economic agenda.
Moreover, the decision to appoint Vance as vice president is seen as a strategic move for political succession, given Trump’s potential four-year term if re-elected. The fact that Trump’s potential successor is a bitcoin holder and has prioritized crypto-friendly policies has been viewed positively by the crypto community.
As the pressure from Saxony’s bitcoin sales diminishes, the crypto market seems to be aligning with the sustained rally in technology stocks on Wall Street. This positive sentiment has even overshadowed news of creditor reimbursements from the defunct exchange Mt. Gox, indicating the prevailing optimism in the crypto space.
