Bitcoin price has not had a great start to Q3 2024 after falling to a multi-month low over the past week. Bitcoin spot ETFs (exchange-traded funds), on the other hand, appear to be benefiting from the recent price dropafter recording a positive week in terms of capital flows.
According to the latest data, a significant amount of capital has flowed into Bitcoin investment products despite the poor performance of the flagship cryptocurrency.
$238 Million Poured Into US Bitcoin Spot ETFs Last Week
On Friday, July 5, Bitcoin spot ETFs saw a net inflow of over $143 million, the largest net inflow the market has seen since June 6, about a month ago. Coinglass dataThe majority of the capital inflows were provided by Fidelity’s FBTC.
Digging into the data, only four of the 11 spot Bitcoin ETFs saw inflows, peaking at $172 million, with about 80% of the total going to Fidelity’s FBTC fund. Bitwise (BITB), VanEck (HODL), and Ark 21Shares (ARKB) made up the rest of Friday’s inflows.
Grayscale GBTC The funds saw an outflow of approximately $29 million, while the remaining funds did not see any significant capital flows. Ultimately, this influx of capital marked a positive end to the week and a complete reversal from the back-to-back days of capital outflows leading up to the July 4 holiday.
According to data from Coinglass, last week, Bitcoin spot ETFs in the US saw a net inflow of $238.4 million. This suggests that institutional investors are filling their pockets despite the recent downturn in the leading cryptocurrency.
In a recent post on the X Bitwise CEO Hunter Horsley said the company’s portfolio management team effectively acquired Bitcoin at less than half a basis point of cost. This means the transaction cost was less than 0.005% of the purchase amount.
Horsley also highlighted that asset management firm Bitwise now holds over 38,000 Bitcoins for investors. The CEO added:
Bitcoin’s outlook has never been better. For those not yet exposed to it, this week is an opportunity to buy the dip.
Bitcoin Price Overview
As I write this, the Bitcoin price Bitcoin price continues to inch closer to the $60,000 mark, trading around $58,133. This reflects a price increase of nearly 3% over the past 24 hours. On the weekly timeframe, however, the flagship cryptocurrency is still down more than 5%.
The price of BTC breaks above $58,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Shutterstock, chart from TradingView
