Spot Bitcoin ETFs Attract $438M in 2 Days as Investors Buy the Dip

The recent decline in Bitcoin prices has prompted investors towards huge buying of spot Bitcoin ETFs. According to a report from Bloomberg, the US spot Bitcoin Exchange traded funds (ETFs) have seen a total of $438M net inflow in only 2 trading sessions.

The rising investment activity was attributed to the major bitcoin price drop of around 20% since early june.

Unlike traditional method of selling at declining prices, the buying activity has increased during the dip.

According to Charlie Morris, Chief Investment Officer at ByteTree, the recent supply storm would soon pass because most investors still do not own the Bitcoin which suggests a long term bullish outlook. Morris was emphasizing on the temporary nature of current market fall.

There could be many reasons behind the recent selling pressure on bitcoin. However, the most significant and impactful reason could be the repayments related to the defunct Mt. Gox exchange along with a German government entity liquidating BTCs.

However, many analysts are suggesting that these factors are contributing to major buying as it is providing an attractive entry point for new investors at discounted rates.

According to a report from an investment firm, CoinShares, digital asset investment products saw an inflow of $441 million over the past week.

Despite these significant inflows, trading volumes in exchange-traded products remained relatively low at $7.9 billion. However, this is consistent with typical summer patterns. Historically, July has been a bullish month for the crypto market, with a median return of 9%.

Therefore, many traders expect this trend to continue and are buying the digital asset investment products.

Meanwhile, data from SoSoValue reveals that the cumulative net inflow for Bitcoin has reached $15.27 billion, with a daily net inflow of $216 million. The total net assets across Bitcoin ETFs currently stand at $50.79 billion, with Bitcoin priced at $58,904.6 at the time of reporting.

These figures highlight the sustained institutional interest in Bitcoin through regulated ETF products. This is notable despite the recent price volatility and selling pressure. Notably, BlackRock’s IBIT led the inflows with about $121 million. Fidelity’s FBTC followed with $90.95 million.

This significant influx of capital into Bitcoin ETFs demonstrates the confidence of investors in the long-term value of Bitcoin. The willingness to buy during price dips could potentially provide support for Bitcoin’s value.

This could help stabilize the market amidst ongoing challenges. As the market adapts to the current pressures, the robust inflows suggest a resilient optimism among institutional investors about the future of Bitcoin.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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