Bitcoin ETFs are experiencing significant inflows despite the challenges in the overall market. The price of Bitcoin has been facing intense pressure due to issues like Mt.Gox and the German government’s selloff. However, the ETF market for Bitcoin appears to be waking up as it recorded $143.1 million in new investments on Friday. This is a remarkable achievement for the spot BTC ETF market, as it is the highest figure seen in the past two weeks.
According to data from Farside Investors, Fidelity’s FBTC led the way on Friday with net inflows of $117.4 million. Bitwise’s BITB followed with $30.2 million, and VanEck’s HODL came in at $12.8 million. Ark Invest’s Bitcoin ETF (ARKB) secured fourth place with a net inflow of $11.3 million. On the other hand, Grayscale Investment’s GBTC continued to see outflows, losing $28.6 million. Issuers like BlackRock, Invesco Galaxy, Franklin Templeton, Valkyrie, and Wisdom Tree did not see any net inflows in their spot BTC ETFs.
Although the $143.1 million inflow into spot Bitcoin ETFs is substantial, it falls short of previous records. As mentioned in a previous report in June, Bitcoin spot ETFs received inflows of $1 billion, which resulted in increased demand for cryptocurrencies like Bitcoin Cash (BCH) and Rollblock (RBLK). However, it is worth noting that Bitcoin was trading at a higher value during that surge in ETF inflows.
Spot Bitcoin ETFs achieved a new milestone in early June by outperforming their gold counterparts. Ripple Labs Inc.’s CEO, Brad Garlinghouse, noted that spot Bitcoin ETFs experienced greater upward movement compared to Gold ETFs. Garlinghouse’s analysis revealed that it took three years for SPDR Gold Shares ETF to accumulate $10 billion in assets after its launch in 2004. In contrast, BlackRock’s IBIT achieved double that amount in just five months since going live.
As of now, BTC has experienced a 0.6% decline in the past 24 hours and is priced at $57,109. The trading volume has increased by 35.8% to $28 billion, while the market capitalization remains at $1.1 trillion, according to MarketCap data. This represents a slight recovery for Bitcoin after its price fell from nearly $61,000 on Wednesday to under $54,000 on Friday.
Over the past week, BTC has declined by 8.9% and over 23% from its mid-March All-Time High of $73,500. The main factor contributing to this decline is concerns about a potential surge in supply in the market. The announcement by the trustees of the defunct Mt.Gox exchange to return 137,890 BTC to its creditors has raised concerns about a possible sell-off that could decrease the value of Bitcoin if supply surpasses demand.
Another event that has added to the supply surge concern is the recent movement of BTC by the German government, transferring 282.74 BTC to the Bitstamp exchange. This has further fueled worries that supply could outpace demand if necessary measures are not taken to prevent it.