BTC Hits $57K with $295M Inflows into Spot Bitcoin ETFs as Investors Buy the Dip

Highlights:

• Spot Bitcoin ETFs in the United States witnessed $295 million in new inflows on Monday.
• BlackRock’s IBIT received $187M in inflows, the highest in recent weeks.
• BTC price surges over 2%, approaching $60k.

US-based spot Bitcoin ETFs record $295 million in net inflows on July 8 amid ongoing selling pressure from the German government and Mt. Gox repayments. According to data from Farside Investors, this represents the highest single-day inflows in a month.

On July 8, the total net inflow of Bitcoin spot ETFs was $295 million, the highest inflow in the past 21 days. Yesterday, the German government also sold the largest amount of BTCs in recent times, reaching $915.3 million. Grayscale ETF GBTC had a single-day inflow of $25.0753… pic.twitter.com/Xzw0NANog6

— Wu Blockchain (@WuBlockchain) July 9, 2024

IBIT Leads with $187M, GBTC Also Records Inflow

BlackRock’s iShares Bitcoin ETF (IBIT) saw a significant $187.2 million inflow, the highest in recent weeks. This boosted BlackRock’s total net inflow to over $17.9 billion, with BTC holdings valued at nearly $18 billion.

Fidelity Bitcoin ETF (FBTC) recorded $61.5 million in inflows on Monday, contributing to a total inflow of $9.42 billion. Bitwise Bitcoin ETF (BITB) received $11 million, Ark 21Shares (ARKB) Bitcoin ETF saw $8.4 million, and VanEck Bitcoin ETF (HODL) had inflows of $1.6 million. Other spot Bitcoin ETFs reported zero net inflows.

Meanwhile, the Grayscale Bitcoin Trust experienced a rare day of positive price action, attracting $25.1 million in inflows. This marks its largest inflow since June 5, when the ETF garnered over $488 million in new capital. Following Monday’s gains, net inflows into spot Bitcoin ETFs have crossed the $15 billion threshold despite the $18.5 billion worth of outflows from GBTC, per data from Farside Investors.

Key Events Prompting Investors to Buy the Spot Bitcoin ETFs

The crypto market has seen a downward trend in recent weeks, partly due to the Mt. Gox repayment announcement and recent government wallet activities in the US and Germany. Since early July, the German government has been actively selling Bitcoin. Arkham Intelligence reports that the government currently holds approximately 24.36K BTC, valued at $1.4 billion. Recent transfers indicate that German authorities have sold nearly half of their original BTC holdings, which were around 50,000 BTC.

Furthermore, Mt. Gox’s Rehabilitation Trustee confirmed last Friday that the company has started repaying creditors affected by the 2014 hack. Victims will receive repayments of Bitcoin and Bitcoin Cash through designated crypto exchanges. Those developments have likely intensified selling pressure across the crypto market.

However, many investors see this as an opportunity and have begun buying the dips. The price of Bitcoin has fallen sharply over the past two trading weeks, hitting a low of $53,600 on July 5, marking the first time the asset has traded below $54,000 since February.

Bitcoin Price Poised to Rally Above $60k

Institutional buying signals the strong potential for Bitcoin to rally above $60k. Experts are bullish on BTC’s price and expect Mt. Gox creditors to hold onto their Bitcoin in the current bull market.

In 6 months, US-listed Bitcoin ETFs brought in over $14.7B in net inflows. Key takeaway? Interest in #Bitcoin and digital assets remains high.

Token prices and market caps fluctuate, but the long-term fundamentals of our industry is strong.

Stay focused and keep building! 🚀

— Richard Teng (@_RichardTeng) July 9, 2024

BTC has surged more than 2% in the past 24 hours, trading at $57,603. Trading volume has also risen by 36% in the past 24 hours, suggesting increased interest among traders. Moreover, Data from the derivatives market indicates significant buying activity by futures and options traders. 

BTC futures open interest across exchanges surged by 2.60% in the last 24 hours, with notable buying observed on CME and Kraken, signaling increased demand in the US. Traders expect July to be bullish for the crypto market, historically averaging a 9% return.

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