Bitcoin ETFs are experiencing significant inflows despite the challenges in the broader market. The price of Bitcoin has been facing intense pressure due to the impact of Mt.Gox and the German government’s selloff. However, the Bitcoin ETF market is showing signs of recovery as it recorded a total of $143.1 million in new investments on Friday. This is a remarkable achievement for the spot BTC ETF market, as it represents the highest figure in the past two weeks.
According to data from Farside Investors, Fidelity’s FBTC led the way with $117.4 million in net inflows on Friday. Bitwise’s BITB followed with $30.2 million, while VanEck’s HODL attracted $12.8 million. Ark Invest’s Bitcoin ETF (ARKB) secured fourth place with $11.3 million in new investments. On the other hand, Grayscale Investment’s GBTC continued to experience outflows, losing $28.6 million. Other issuers such as BlackRock, Invesco Galaxy, Franklin Templeton, Valkyrie, and Wisdom Tree did not see any net inflows in their spot BTC ETFs.
Although the $143.1 million inflows into spot Bitcoin ETFs are significant, they fall short of previous records. As mentioned in our previous report in June, Bitcoin spot ETFs accumulated $1 billion in inflows, which led to increased demand for cryptocurrencies like Bitcoin Cash (BCH) and Rollblock (RBLK). However, it is worth noting that Bitcoin was trading at a higher value during that period.
In early June, spot Bitcoin ETFs achieved a new milestone by outperforming their gold counterparts. Ripple Labs Inc.’s CEO, Brad Garlinghouse, highlighted this trend and stated that spot Bitcoin ETFs experienced a greater upward movement compared to Gold ETFs. Garlinghouse pointed out that it took three years for SPDR Gold Shares ETF to accumulate $10 billion in assets after its launch in 2004. In contrast, BlackRock’s IBIT doubled that amount in just five months since its launch.
As of now, Bitcoin has experienced a 0.6% decline in the last 24 hours and is currently priced at $57,109. The trading volume has increased by 35.8% to $28 billion, while the market capitalization remains at $1.1 trillion, according to data from MarketCap. This slight recovery follows a drop from nearly $61,000 on Wednesday to under $54,000 on Friday.
Over the past week, Bitcoin has declined by 8.9% and more than 23% from its mid-March All-Time High of $73,500. The primary factor contributing to this decline is concerns about a potential oversupply in the market. The announcement by the trustees of the defunct Mt.Gox exchange, stating their intention to return 137,890 BTC to creditors, raised concerns about a possible sell-off that could drive down the value of Bitcoin if supply surpasses demand. Additionally, the movement of 282.74 BTC from the German government to the Bitstamp exchange further fueled concerns about a potential oversupply.
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