Bitcoin ETF Investors Seize Buying Opportunity with Almost $300 Million Inflows
On Monday, U.S.-listed spot ETFs experienced nearly $300 million in fresh capital inflows. Investors appear to be seeking bargains as temporary supply imbalances put pressure on BTC’s value.
The spot bitcoin (BTC) exchange-traded funds (ETFs) saw approximately $300 million in net inflows on Monday, marking the highest level of buying activity since early June when the cryptocurrency was trading above $70,000.
Data from SoSoValue indicates that BlackRock’s IBIT led the way with around $180 million in net inflows, trailed by Fidelity’s FBTC. Despite its history of outflows, Grayscale’s GBTC saw over $25 million in purchases.
ETFs provided by Invesco, Franklin Templeton, Valkyrie, WisdomTree, and Hashdex did not show any inflow or outflow activity.
The influx of funds comes at a time when bitcoin is facing significant selling pressure from various quarters, including repayments associated with the now-defunct crypto platform Mt. Gox and a German governmental entity transferring hundreds of millions of dollars’ worth of BTC to exchanges in the previous month.
In light of these circumstances, some investors may perceive the selling pressure as an opportunity to buy, as noted in a report from investment firm CoinShares on Monday.
CoinShares stated, “Digital asset investment products received inflows totaling US$441 million, with recent price declines influenced by Mt. Gox and German government selling pressure likely being viewed as a buying chance. Nevertheless, volumes in Exchange Traded Products (ETPs) stayed relatively modest at US$7.9 billion for the week, reflecting the usual seasonal trend of reduced volumes during the summer months.”
Market participants generally anticipate July to be a bullish period for the cryptocurrency market, with a historical average return of 9%, and this trend is expected to persist.
The article has been edited by Omkar Godbole.
