As an experienced financial analyst, I believe that the recent inflows into US spot Bitcoin ETFs, particularly BlackRock’s IBIT, are a clear sign of institutional investors taking advantage of the market volatility caused by the selling pressure from the German government. The fact that these inflows have been occurring despite a drop in BTC price shows the strong demand for Bitcoin as an asset class among long-term holders and institutional investors.
Recently, there has been renewed interest in US Bitcoin exchange-traded funds (ETFs) as investments have been flowing in at a faster rate. On July 9, 2021, these Bitcoin ETFs saw an inflow of approximately $214 million, with BlackRock’s IBIT taking the lead.
BlackRock’s IBIT Scoops 2134 BTC
Yesterday, I observed significant inflows into the BlackRock Bitcoin ETF (IBIT), amounting to $121 million, which translated to approximately 2134 Bitcoins being added to its holdings. In contrast, the previous day’s inflows reached an impressive $187 million, enabling the acquisition of over 3,300 Bitcoins. These events unfolded as the Bitcoin price plummeted to a low of around $53,500 earlier on Monday.
As an analyst, I can tell you that it’s evident from the data that Bitcoin Exchange-Traded Funds (ETFs) have been taking in the brunt of the selling pressure instigated by the German government’s recent actions. In fact, the total inflows into US Bitcoin ETFs have reached a three-week peak. With the price of Bitcoin plummeting to new lows, long-term investors view this downturn as an excellent opportunity to acquire more units at reduced prices.
BlackRock buys 2134 BTC ($121m)!
IBIT holders thank Germany for the discount
— Julian Fahrer (@Julian__Fahrer) July 9, 2024
Over the past week, BlackRock’s IBIT Bitcoin ETF has been the top performer among US spot Bitcoin ETFs in terms of net inflows. On July 9 specifically, there was a collective inflow of $216 million into all Bitcoin ETFs. BlackRock’s IBIT saw the largest single-day influx with $121 million, while Fidelity’s FBTC came in second with an inflow of approximately $91 million. In contrast, Grayscale’s GBTC experienced a daily outflow of around $37.5 million.
Bitcoin ETF Shares on A Recovery
US Bitcoin exchange-traded funds (ETFs) have seized the moment during the recent decline in Bitcoin’s price. The value of share prices for spot Bitcoin ETFs has faced pressure as the cryptocurrency hit a four-month low this week.
Despite the return of robust inflows, the price of shares in the Bitcoin ETF has started to rebound, with gains of 2-5% over the past two days. On Tuesday alone, the iShares Bitcoin Trust (NASDAQ: IBIT) experienced a surge of 2.49%, reaching a new high of 32.96.
Despite the IBIT stock being 17% cheaper on the monthly price chart, it has managed to achieve a 23.77% growth in value since the start of the year. Similarly, the share prices for other Bitcoin ETFs in the US have experienced notable recoveries as well.
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2024-07-10 09:23