Following the recent approval of a spot Ethereum Exchange-Traded Fund (ETF) in the United States, the broader cryptocurrency market has been under significant selling pressure. Despite this trend, Bitcoin ETFs are experiencing unprecedented inflows, signaling strong investor confidence in Bitcoin.
$534 million of inflow in Bitcoin ETF
According to data from the on-chain analytics firm Spotonchain, Bitcoin ETFs have seen an influx of over $534 million over the past 12 trading days. Among these, BlackRock’s iShares Bitcoin Trust (IBIT) stands out with a remarkable inflow of half a billion dollars. This is the largest inflow IBIT has experienced since March 13, 2024. With this influx, IBIT’s total inflows have now surpassed $19.5 billion, and its holdings have soared to 325,000 BTC, valued at approximately $22.5 billion.
$BTC #ETF Net Inflow July 22, 2024: +$534M (BIG DAY) – pending!• The net inflow remains positive for 12 consecutive trading days.• The above inflow figure does not include #Bitwise (BITB) data.• #BlackRock (IBIT) recorded half a billion inflow. This ETF has not seen… pic.twitter.com/VkJ7q62mu6
— Spot On Chain (@spotonchain) July 23, 2024
The substantial inflow has positively impacted IBIT’s share price, which has risen by 2.56% in response. Over the last two weeks, IBIT has seen its share price increase by over 20%, and in the past 30 days, it has gained more than 15%. This strong performance highlights the growing investor interest in Bitcoin amid market volatility.
In contrast, VanEck’s HODL ETF experienced a notable outflow of $38.4 million, the largest single-day outflow since the ETF’s launch. Additionally, Grayscale’s GBTC reported no new inflows, indicating a stark difference in investor sentiment across different Bitcoin ETFs.
Bitcoin technical analysis
Technical analysis of Bitcoin (BTC) reveals that it remains bullish, although it is currently testing a critical demand zone. As of writing, BTC is trading around $66,700, hovering near a crucial support level of $66,200. This demand zone has been tested multiple times since July 19, 2024. Persistent testing could weaken this support level, potentially leading to a price drop to $64,000 if BTC fails to hold its ground. However, Bitcoin’s price remains above the 200 Exponential Moving Average (EMA) on both daily and 4-hour charts, indicating a bullish trend.
Despite a recent price drop of over 1.5% in the last 24 hours, investor and trader participation has surged by 45%. Over the past 30 days, Bitcoin has appreciated by 4.7%, reflecting sustained interest and confidence in the cryptocurrency market, even amid broader market challenges.
