Bitcoin ETF Inflows Surge as Institutional Interest Grows
In a surprising turn of events, regulated spot Bitcoin ETFs (exchange-traded funds) in the United States have seen a resurgence in inflows, following a period of significant selling pressure that had pushed the world’s largest cryptocurrency to a 6-month low of $53,500 on July 5.
ETFs and Institutions Now Control 9% of Total Bitcoin Supply
According to data from analytics providers SoSo Value and Ecoinmetrics, Bitcoin ETFs have been consistently accumulating BTC in their holdings, despite a brief dip in inflows at the start of June. Since July 1st, however, inflows have resumed at an accelerated pace, surpassing the averages recorded over the previous two months.
On July 31st alone, the Bitcoin spot ETF saw a net inflow of $298 million, while the Grayscale mini ETF BTC had a net inflow of $17.99 million. Additionally, the BlackRock ETF IBIT recorded an inflow of $20.99 million.
Data from Ecoinmetrics reveals that Bitcoin ETFs have added nearly 300,000 BTC to their holdings since their approval by the US Securities and Exchange Commission (SEC) in January 2023. While the pace of accumulation has slowed from earlier this year, the consistent inflows, even during periods of price stagnation, are seen as a testament to the persistent institutional demand for the leading cryptocurrency.
In total, institutions now control nearly 9% of the entire Bitcoin supply, with ETFs and ETF-like products accounting for approximately 5.2% of the total. Public companies hold another 1.6%, while private companies account for at least 2% of the BTC supply.
Bullish Sentiment Reaches Highest Level Since May
Despite Bitcoin’s recent inability to surpass the $69,000 resistance level and a recent retrace of over 5% in the past 24 hours, the overall sentiment toward the leading cryptocurrency appears to be turning increasingly bullish.
Market intelligence platform Santiment reports that the level of bullish commentary on Bitcoin this week has reached its highest point since the week of May 15. This suggests that many in the crypto community believe that the Bitcoin price is poised to reach the $70,000 milestone soon.
Corroborating this sentiment, crypto analyst Ali Martinez has noted that top traders on the Binance exchange are currently buying the Bitcoin dip, with nearly 70% of them going long on BTC, according to on-chain data.
MicroStrategy Continues Bitcoin Accumulation Strategy
In related news, business intelligence firm MicroStrategy purchased an additional 12,222 Bitcoin for $805 million in the second quarter of this year, bringing its total Bitcoin holdings to 226,500 BTC — worth $14.7 billion at current prices.
Despite posting a net loss of $123 million for Q2, MicroStrategy remains committed to its Bitcoin accumulation strategy. The company unveiled a new key performance indicator called “Bitcoin Yield,” which represents the percentage change over time in the ratio between the firm’s Bitcoin holdings and its diluted outstanding shares.
MicroStrategy said its BTC yield currently stood at 12.2% in the year-to-date period, noting that it would target a rate of between 4% – 8% annually over the next three years.
As institutional interest in Bitcoin continues to grow and ETF inflows surge, the cryptocurrency market remains poised for potential further gains. However, short-term price action remains a cause for concern, with analysts closely watching the $64,200 mark as a crucial support level for Bitcoin’s near-term trajectory.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals