Bitcoin ETFs are experiencing significant inflows despite the challenges in the broader market. The price of Bitcoin has been under pressure due to issues such as the Mt.Gox situation and the German government’s selloff. However, the Bitcoin ETF market is showing signs of recovery, with a total of $143.1 million in new investments on Friday. This is a notable achievement for the spot BTC ETF market, as it is the highest amount recorded in the past two weeks.
According to data from Farside Investors, Fidelity’s FBTC led the way in net inflows on Friday with $117.4 million. Bitwise’s BITB came in second with $30.2 million, followed by VanEck’s HODL with $12.8 million. Ark Invest’s Bitcoin ETF (ARKB) secured fourth place with $11.3 million in new investments. On the other hand, Grayscale Investment’s GBTC experienced outflows of $28.6 million. Other issuers, including BlackRock, Invesco Galaxy, Franklin Templeton, Valkyrie, and Wisdom Tree, did not see any net inflows in their spot BTC ETFs.
While the $143.1 million inflows into spot Bitcoin ETFs are significant, they do fall short of previous records. In June, Bitcoin spot ETFs saw inflows of $1 billion, which led to increased demand for cryptocurrencies like Bitcoin Cash (BCH) and Rollblock (RBLK). It’s worth noting that Bitcoin was trading at a higher value when this surge in net inflows occurred.
In early June, spot Bitcoin ETFs surpassed their gold counterparts, marking a new milestone. Ripple Labs Inc.’s CEO, Brad Garlinghouse, highlighted the upward movement of spot Bitcoin ETFs compared to Gold ETFs. He pointed out that it took three years for SPDR Gold Shares ETF to accumulate $10 billion in assets, while BlackRock’s IBIT achieved double that amount in just five months since its launch.
As of now, BTC has experienced a 0.6% decline in the last 24 hours and is priced at $57,109. The trading volume has increased by 35.8% to $28 billion, while the market capitalization remains at $1.1 trillion. This slight recovery comes after a drop from almost $61,000 on Wednesday to under $54,000 on Friday.
Over the past week, BTC has declined by 8.9% and over 23% from its mid-March All-Time High of $73,500. The main reason for this decline is concerns about an increase in supply in the market. The announcement by the trustees of the defunct Mt.Gox exchange to return 137,890 BTC to its creditors raised concerns about a potential sell-off that could drive down the value of Bitcoin if supply exceeds demand. Additionally, the German government’s transfer of 282.74 BTC to the Bitstamp exchange has further fueled concerns about supply surpassing demand.
In conclusion, Bitcoin ETFs are attracting significant investments despite the challenges faced by the broader market. The recent inflows into spot Bitcoin ETFs, although not reaching previous records, indicate a positive trend. However, concerns about supply and potential sell-offs continue to impact Bitcoin’s price.