Bitcoin Dip Buying Spree
Bitcoin’s price recently dropped, but investors are still buying. In just two days, Bitcoin ETFs saw $438 million in inflows. BlackRock’s IBIT ETF led the way with $180 million in purchases.
Record Inflows on a Single Day
Bitcoin ETFs recorded nearly $300 million in inflows on a single Monday. This is the highest level of buying activity since early June when Bitcoin was trading above $70,000. According to Bloomberg, over $438 million was poured into US ETFs in just two days.
BlackRock’s IBIT ETF was the top performer with nearly $180 million in purchases. Following IBIT, Fidelity’s FBTC also saw significant inflows. Grayscale’s GBTC, which usually sees outflows, recorded over $25 million in purchases.
Factors Influencing Bitcoin Buying
These strong inflows come at a time when Bitcoin is facing selling pressure from multiple sources. One major source is the repayments related to the defunct Mt. Gox exchange. Another source is the German government, which is moving large amounts of Bitcoin to exchanges.
Some analysts believe that investors see this selling pressure as a buying opportunity. CoinShares reported total inflows of $441 million into digital asset investment products for the week. Despite this, trading volumes in exchange-traded products remained relatively low at $7.9 billion, which is typical for summer.
Historical Trends and Current Data
Historically, July has been a bullish month for the crypto market, with a median return of 9%. Many traders expect this trend to continue. Data from SoSoValue shows that the cumulative net inflow for Bitcoin has reached $15 billion, with the daily net inflow at $294 million. The total net assets across these ETFs stand at $49.32 billion, with Bitcoin priced at $55,844.2 at the time of reporting.
This data suggests that despite recent price volatility and selling pressure, institutional interest in Bitcoin through regulated ETF products remains strong. Investors’ willingness to buy during price dips could potentially support Bitcoin’s value in the face of current market challenges.
Spot Bitcoin ETFs See Record Inflows
US spot Bitcoin exchange-traded funds (ETFs) attracted approximately $295 million in inflows on Monday. This was amid ongoing selling pressure from the German government and Mt. Gox repayments. According to SoSoValue, this marks the highest level of single-day inflows in a month.
BlackRock’s IBIT fund led with $187 million in inflows while Fidelity’s FBTC reported $61.5 million. Meanwhile, Grayscale’s GBTC saw $25 million in inflows. Bitwise’s BITB, ARK 21Shares’ ARKB, and VanEck’s HODL followed with $11 million, $8 million, and $1.5 million, respectively. The remaining funds saw no inflows.
BlackRock’s iShares Bitcoin Trust currently holds over $17 billion in assets under management, according to updated data from its official domain.
Selling Pressure from Government and Mt. Gox
The crypto market has been trending downward over the past few weeks. This followed the Mt. Gox repayment announcement and recent wallet activities by the US and German governments.
Since early July, the German government has been constantly selling Bitcoin. According to Arkham Intelligence, the government currently holds around 27,400 BTC, worth $1.5 billion. After recent BTC transfers, the German authorities sold almost half of their BTC holdings, which originally stood at around 50,000 BTC.
Mt. Gox’s Rehabilitation Trustee confirmed that it had initiated the repayment process last Friday. As part of the plan, Mt. Gox’s victims will not receive Bitcoin and Bitcoin Cash repayments directly but through designated crypto exchanges.
These events have likely increased selling pressure across the crypto market. Bitcoin was down 17% in 30 days and is currently trading at around $57,000, according to CoinGecko.
DigitalX Set to Launch Bitcoin Spot ETF on ASX
In Australia, DigitalX Limited, a digital asset fund manager, is set to launch its spot Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX) on July 12. ASX is Australia’s leading exchange, handling about 80% of equity trading in the country.
Developed with K2 Asset Management and 3iQ, DigitalX’s new ETF will be listed under the ticker BTXX. With this new listing, DigitalX will become the second asset manager to receive approval to launch a spot Bitcoin ETF on the ASX.
Lisa Wade, CEO of DigitalX, said the new ETF will make it easier for institutional investors to access digital asset fund products. “I believe this will attract new entrants into the market and ultimately allow institutions to include Bitcoin and digital assets into strategic asset allocations,” said Wade.
Other Bitcoin ETFs in Australia
The ASX recently approved a spot Bitcoin ETF from VanEck. VanEck’s Bitcoin ETF (VBTC) went live on June 20 and attracted A$1.5 million (around $1.3 million) on its debut date.
In addition to VanEck and DigitalX, BetaShares, another leading Australian fund manager, is also working to list its Bitcoin and Ethereum ETFs on the ASX.
Conclusion
The recent inflows into Bitcoin ETFs show strong institutional interest in Bitcoin, even during periods of selling pressure. Despite price volatility, investors are buying Bitcoin ETFs, indicating confidence in Bitcoin’s long-term value. The launch of new ETFs, like DigitalX’s on the ASX, further demonstrates the growing acceptance and integration of Bitcoin into traditional investment strategies. As Bitcoin continues to attract attention from both individual and institutional investors, its role in the financial market is likely to expand.
