Bitcoin ETF Inflow Sees Surge Admid Market Downturn

Key Points:

• Bitcoin ETF inflows exceeded $140 million on July 5, boosting BTC price to $56,000.
• The market lost over $500 billion due to the German Bitcoin sale and Mt. Gox asset distribution.

According to Farside Investors, Bitcoin exchange-traded funds (ETFs) showed promising activity on the last trading day of the week, with inflows surpassing $140 million.

Bitcoin ETF Inflows Hit Record High Since June

The positive Bitcoin ETF inflow came after a series of negative events had driven Bitcoin prices below $54,000.

On July 5, Grayscale’s GBTC saw a net outflow of $28.6 million. In contrast, Fidelity’s FBTC experienced a net inflow of $117.4 million, Bitwise’s BITB had $30.2 million, ARK’s ARKB saw $11.3 million, and VanEck’s HODL recorded $12.8 million in inflows. The total Bitcoin ETF inflow of $143.1 million was the highest since June, helping Bitcoin reclaim a price of $56,000.

June was challenging for Bitcoin ETFs and the cryptocurrency’s price. Spot Bitcoin ETFs recorded nine days of outflows and ten days of inflows, with outflows exceeding inflows significantly. The recent upward trend offers some relief to investors after a tough month.

Spot Bitcoin ETFs in the U.S. were approved on January 10, beginning trading the following day. Initially, major ETFs saw substantial inflows and trading volumes, except for Grayscale’s GBTC, which has faced significant outflows since its conversion to an ETF.

External Factors Impact Cryptocurrency Market

Bitcoin’s price recently fell to a two-month low of $55,000 after the U.S. Federal Reserve‘s June meeting minutes indicated that interest rate cuts were not imminent. Despite rising above $56,800, Bitcoin experienced volatility but maintained most of its gains.

The cryptocurrency market saw over $500 billion in value evaporate since mid-June, partly due to the German government’s seizure and subsequent sale of 6,500 Bitcoin. Additionally, the defunct exchange Mt. Gox announced it would start distributing assets to creditors from a 2014 hack, adding further pressure on Bitcoin’s price.