Markets
Bitcoin ETFs See $1 Billion in Inflows Despite Market FUD
Bitcoin exchange-traded funds (ETFs) have accumulated over $1 billion worth of BTC over the past three trading days, indicating strong investor interest. This notable influx of funds coincides with the price of Bitcoin hitting $66,000 despite ongoing market uncertainty.
This strong participation from institutional and retail investors reflects bullish sentiments in the market.
Bitcoin ETFs, Crypto Whales Accumulate
According to Farside Investors, spot Bitcoin ETFs saw substantial inflows on Tuesday, receiving over $422.5 million — the peak for the month. BlackRock iShares Bitcoin Trust (IBIT) Investment Fund led these inflows with $260.2 million.
About that, Fidelity Wise Origin Bitcoin Fund (FBTC) saw around $61.1 million in inflows. Impressively, there were no outflows from Bitcoin ETFs during the last three trading days.
Read more: How to Trade a Bitcoin ETF: A Step-by-Step Approach
| July 12, 2024 | 120.0 | 115.1 | 28.4 | 13.0 | 4.0 | 0.0 | 0.0 | 6.6 | 0.0 | 23.0 | 0.0 | 310.1 |
| July 15, 2024 | 117.2 | 36.1 | 15.2 | 117.2 | 7.9 | 3.7 | 0.0 | 3.6 | 0.0 | 0.0 | 0.0 | 300.9 |
| July 16, 2024 | 260.2 | 61.1 | 17.3 | 29.8 | 20.5 | 9.4 | 2.2 | 22.0 | 0.0 | 0.0 | 0.0 | 422.5 |
Bitcoin ETF Flow. Source: Farside Investors
Simultaneously, crypto whales have also been active, accumulating significant amounts of BTC. On July 15, data from CryptoQuant showed that Bitcoin accumulation addresses received approximately 10,800 BTC, roughly $656.64 million.
Bitcoin Inflows to Accumulation Addresses. Source: CryptoQuant
Additionally, CryptoQuant CEO Ki Young Ju shared insights on X (formerly Twitter) about the behavior of Bitcoin holders. In the past 30 days, mostly custodial wallets, which typically do not see outflows, have accumulated 85,000 BTC. According to Ju, while some market participants are panicking, sellingothers are capitalizing on the opportunity to buy.
Amid these developments, concerns about Mt. Gox have resurfaced. The now-defunct exchange recently moved 91,755 BTC (~$5.8 billion) to new addresses, sparking fears among investors. Shortly after, Kraken announced that it would distribute Bitcoin and Bitcoin Cash (BCH) for those affected by the Mt. Gox collapse.
Despite these fears, experts like Ju believe the market has overestimated the potential turbulence of Mt. Gox refunds.
“$224 billion worth of Bitcoin has been sold since 2023, but the price has gone up 350%. Even if the $3 billion from Mt. Gox is sold on Kraken, it is only 1% of the capital increase realized in this bull cycle — manageable liquidity,” Ju explained.
Galaxy’s head of research, Alex Thorn, also argues that the impact on Bitcoin Selling Pressure May Be Lower Than Expected. Their assessment comes from detailed analyses of bankruptcy filings and discussions with creditors.
Read more: Major Crypto Bankruptcies: What You Need to Know
Thorn believes the payment terms could encourage lenders to hold on to their assets, given the significant capital gains taxes involved. After prepayment deductions, individual lenders will receive about 65,000 BTC. Even if 10% of that is sold, only about 6,500 BTC would come to market — far less than market fears had predicted.
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