In a decisive move amidst Bitcoin's latest downturn, institutional investors are snapping up Spot Bitcoin ETFs, resulting in a notable spike in inflows. The recent data underscores a significant resurgence in demand for these funds, marking their best weekly performance in months.
Record Weekly Inflows for Spot Bitcoin ETFs
Recent figures from JPMorgan reveal that Spot Bitcoin ETFs witnessed inflows of $882 million in the week ending July 11, the highest since May 23, when they saw net inflows of $1.022 billion. This surge indicates a renewed confidence among investors, eager to capitalize on Bitcoin's dip.
Adding to this, Spot Bitcoin ETFs recorded $310.1 million in net inflows on June 12, the highest weekly figure since March, as per Farside Investors. This week's near $1.05 billion accumulation underscores a robust market activity.
The standout performance came on Friday, with $310.1 million in net flows, the best daily result since June 5. Leading the charge were BlackRock’s IBIT and Fidelity’s FBTC, which attracted $120 million and $115.1 million, respectively. Other notable inflows included Bitwise’s BITB ($28.4 million), Grayscale’s GBTC ($23 million), Ark Invest’s ARKB ($13 million), and VanEck’s HODL ($6.6 million). However, other Spot Bitcoin ETFs did not see any inflow on July 12.
Cumulative Net Inflows Since January
According to Soso Worth, Spot Bitcoin ETFs have accumulated net inflows of $15.81 million since their inception in January. This total includes the significant $18.64 billion net outflows from Grayscale’s GBTC, counterbalanced by BlackRock’s IBIT, which saw inflows of $18.26 billion.
Currently, Bitcoin is trading at $58,362, reflecting data from TradingView. The combined efforts of various Spot Bitcoin ETF issuers have been instrumental, with Fidelity’s FBTC leading in net outflows at $9.72 billion, followed by ARKB and BITB with net inflows of $2.5 billion and $2.13 billion, respectively.
Anticipated Market Recovery
The crypto market has faced headwinds due to the German government’s recent Bitcoin sales. However, the outlook is brightening. On-chain analytics from Arkham Intelligence confirm that the German government's Bitcoin reserves are now depleted.
With this development and the ongoing support from Spot Bitcoin ETFs, Bitcoin is poised to rebound and potentially reclaim the $60,000 threshold. Additionally, the imminent launch of Spot Ethereum ETFs, predicted to start trading next week by Bloomberg analyst James Seyffart, is expected to inject further bullish momentum into the market, signaling a promising recovery for Bitcoin and the broader cryptocurrency sector.
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