Markets
Bitcoin ETF Inflows Hit 5-Week High as Spot Markets Recovery Continues
Total inflows into the ten US spot Bitcoin ETFs reached $310 million, or 5,361 BTC, on Friday, July 12. This is the largest inflow into the derivatives products since June 5, according to Farside Investors.
Furthermore, it is the sixth consecutive day of positive flows, indicating that institutional investors are buying the bottom of the recent market correction.
Total inflows last week exceeded $1 billion, and the products have not seen an outflow since July 3.
Record BTC supply held by ETFs
BlackRock’s IBIT fund led the pack with an inflow of $120 million, closely followed by Fidelity’s FBTC with $115 million. Earlier this week, the IBIT fund hit a milestone of $18 billion in inflows since its launch in January.
“Meanwhile, IBIT et al. continue to devour BTC like Super Pac-Man. Impressive given the price is still below 60k after a 20% drop,” commented Senior ETF analyst Eric Balchunas in a post on X on July 12.
The Bitwise Bitcoin ETF BITB saw an inflow of about $28 million, and the others were negligible. Even Grayscale’s GBTC spot ETF saw an inflow of $23 million after three days of outflows this week.
GBTC outflows have slowed significantly, however, the fund has lost around 348,000 BTC or 56% of its total assets so far this year.
HODL Capital reported that the total amount of BTC held by all Bitcoin ETFs globally has surpassed one million in a new record. This equates to approximately 5.3% of the asset’s total circulating supply.
Reluctant Retailers
However, while Bitcoin ETFs are accumulating aggressively, retail market sentiment remains in extreme fear, analysts noted.
Bitcoin hit an intraday high of $58,500 on Friday and shot to more than $60,000 on Sunday morning following the failed assassination attempt on Donald Trump.
Furthermore, it appears that the German government has exhausted its supply of Bitcoin, which may ease selling pressure in the future.