Spot Bitcoin ETFs Inflow At 3-Week High, Institutions Buying Heavily Ahead Key Events

by

As an experienced financial analyst, I believe the recent inflows into Spot Bitcoin ETFs are a strong indication of an upcoming market rally for Bitcoin. Institutional investors, despite the German government’s sell-off and macroeconomic events, have been buying heavily in the dip. The record inflow into BlackRock’s iShares Bitcoin ETF and other major players like Fidelity Bitcoin ETF and Grayscale Bitcoin Trust suggest a high level of demand from institutional investors.

Institutional investors showed a strong appetite for Bitcoin ETFs on Monday, as they poured in approximately $295 million, marking two consecutive days of inflows. With this trend setting the tone for the week, it appears that these investors are undeterred by recent sell-offs from the German government and looming macroeconomic events.

Spot Bitcoin ETFs Inflow Hints At Upcoming Market Rally

In the past 21 days, U.S. Bitcoin ETFs experienced the largest weekly inflow of $294.8 million. This surge in investment comes as institutional buyers take advantage of price dips. On a global scale, crypto asset investment products recorded an influx of $441 million last week. The market instability caused by Mt Gox’s crypto weakness and the German Government selling pressure were perceived as opportunities for purchase according to CoinShares.

Based on reports from Bloomberg and Farside Investors, BlackRock’s iShares Bitcoin ETF (IBIT) experienced a significant influx of $187.2 million in recent weeks, marking the highest inflow in some time. As a result, BlackRock’s total net inflows surpassed $17.9 billion, and their Bitcoin holdings are now estimated to be worth approximately $18 billion.

The Fidelity Bitcoin Exchange-Traded Fund (ETF), denoted as FBTC, experienced an inflow of approximately $61.5 million on Monday. In total, it has attracted $9.42 billion since inception. Similarly, the Bitwise Bitcoin ETF (BITB) and Ark 21Shares Bitcoin ETF (ARKB) recorded inflows of $11 million and $8.4 million respectively during this period. The VanEck Bitcoin ETF (HODL) also saw a smaller inflow of around $1.6 million. Meanwhile, no net inflows were reported for other spot Bitcoin ETFs.

Significantly, the Grayscale Bitcoin Trust (GBTC) experienced inflows totaling $25.1 million following several consecutive outflows. This purchase of approximately 450 Bitcoins by GBTC underscores robust institutional investor interest.

Spot Bitcoin ETFs Inflow At 3-Week High, Institutions Buying Heavily Ahead Key Events

BTC Price To Rally Above $60k

Based on current market trends, institutional purchases significantly increase the likelihood that Bitcoin’s price will surge past $60,000. Most industry experts remain optimistic about Bitcoin’s price growth, as they believe creditors from the Mt. Gox hack, who are currently in possession of a substantial amount of Bitcoin, may not sell their holdings during this bull market.

Within the past 6 months, US Bitcoin exchange-traded funds (ETFs) listed on the stock market attracted a total of $14.7 billion in investments. In essence, this indicates a robust demand for Bitcoin and other digital assets.

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

In the past 24 hours, Bitcoin’s price has surged by more than 3%, reaching a current value of $57,603 on the markets. This price hike occurred as investors adjusted their positions in anticipation of Wall Street’s optimistic forecast regarding interest rate reductions. The day’s lowest and highest points for Bitcoin were recorded at $55,240 and $58,131, respectively. Additionally, there has been a significant uptick in trading volume, with a 36% increase observed over the last 24 hours, suggesting heightened interest among traders.

Data from the derivatives market indicates a significant surge in purchasing by traders in the futures and options sectors. The open interest for Bitcoin futures increased by 2.60% within the past 24 hours across various exchanges. This buying activity is evident on both CME and Kraken, suggesting a notable uptick in demand from the US market.

Traders need to exercise caution this week due to several significant events. The Federal Reserve Chair, Jerome Powell, is scheduled to deliver a speech, which could impact market movements. Additionally, both the Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data are set to be released during this period.

Read More

2024-07-09 10:04