Bitcoin Spot ETFs Record Strong Net Inflow of $216M as Investors Buy the Dip

Spot Bitcoin exchange-traded funds (ETFs) saw a combined net inflow of $216.33 million on Tuesday, marking the third consecutive day of positive flows.

According to data compiled by SoSoValue, BlackRock’s IBIT emerged as the leader in inflows, attracting $121.03 million, followed closely by Fidelity’s FBTC with $90.95 million.

Ark Invest and 21Shares’ ARKB also contributed significantly with $43.3 million, while VanEck’s bitcoin fund saw $3.27 million in inflows.

In contrast, Grayscale’s GBTC, the second largest bitcoin ETF, reported outflows amounting to $37.5 million, and Bitwise’s BITB noted net outflows of $4.72 million.

Overall, trading activity across the 11 spot Bitcoin funds reached $1.19 billion on Tuesday alone, underscoring robust market participation.

Since their inception in January, these ETFs have collectively accumulated a substantial net inflow of $15.27 billion.

Bitcoin’s market performance paralleled the influx of institutional investments, with its price climbing 1.58% over the past 24 hours to $58,154.

The upward movement followed a brief dip to around $54,000 last Friday.

On July 9, the total net inflow of Bitcoin spot ETFs was $216 million. Grayscale ETF GBTC had a single-day outflow of $37.4956 million. BlackRock ETF IBIT had a single-day net inflow of $121 million. Fidelity ETF FBTC had a single-day net inflow of $90.9503 million.…

— Wu Blockchain (@WuBlockchain) July 10, 2024

Investors Buy the Dip

Analysts view recent selling pressures—from Mt. Gox repayments to German government entities liquidating Bitcoin—as creating attractive buying opportunities for investors.

CoinShares reported a substantial $441 million influx into digital asset investment products for the week, although trading volumes in exchange-traded products remained modest at $7.9 billion, typical for the summer season.

July historically proves bullish for cryptocurrencies, with a median return of 9%, a trend traders anticipate continuing.

SoSoValue data highlights a cumulative net inflow of $15 billion into Bitcoin, with daily inflows averaging $294 million.

The total net assets across bitcoin ETFs presently stand at $49.32 billion, underpinning sustained institutional interest amid recent market fluctuations.

The positive sentiment was further strengthened by news of a German government entity reclaiming over $200 million worth of bitcoin from exchanges like Kraken, Coinbase, and Bitstamp.

Meanwhile, on-chain trading volume has remained consistent with the year-to-date average, with BTC on-chain daily volume at around $41.1 billion and weekly volume at approximately $288 billion.

The high on-chain selling pressure can be attributed to the start of Mt. Gox repayments, as well as ongoing selling pressure from miners following the recent halving.

Australia’s Second Spot Bitcoin ETF Hits Market

As reported, blockchain-focused asset manager DigitalX has received regulatory approval to launch its spot Bitcoin ETF.

The approval makes DigitalX the second company to offer a Bitcoin ETF on the Australian Securities Exchange (ASX), following VanEck’s recent approval.

The DigitalX Bitcoin ETF, listed under the ticker BTXX, is set to debut on July 12 at 10 am local time.

It is worth noting that Bitcoin miners are facing a critical phase known as “capitulation” as their profits diminish amidst the recent sell-off in the Bitcoin market.

Miner capitulation occurs when miners reduce their operations or sell a portion of their mined Bitcoin and reserves to sustain their operations, earn yield, or hedge their Bitcoin exposure.