Bitcoin ETFs Receive Massive Inflows; Will BTC Price Spike?
- Large US bank invests in Bitwise ETFs, including Bitcoin ETF, with 20% of its wealth management branches participating.
- Recent inflows for BITB reached $44.6 million on Friday, indicating strong investor interest.
- Despite potential short-term volatility from Mt. Gox creditor liquidations, Bitcoin and Ethereum ETFs show bullish long-term prospects.
US Bank Invests in Bitwise Bitcoin ETF, Says CEO
Bitwise CEO Hunter Horsley revealed that a large U.S. bank has heavily invested in Bitwise ETFs, including the Bitcoin ETF, with hundreds of its wealth management branches participating.
This accounts for 20% of the bank's branches. Spot Bitcoin ETFs are gaining mainstream adoption, with significant investments from traditional financial institutions like Jane Street Group and Boothbay Fund Management.
BITB, a Bitwise ETF, holds 40,499.93 BTC valued at $2.71 Billion. The net inflow for BITB has surpassed $2.20 Billion, with a recent $44.6 Million inflow on Friday. Bitwise CEO Horsley and CIO Matt Hougan are optimistic about increased ETF allocations following the launch of spot Ethereum ETFs, predicting that ETH could reach $5,000 due to similar demand patterns seen with Bitcoin ETFs.
Bitcoin Oversold After German Sell-Off, But ETF Inflows Remain Strong
According to a report by ARK Invest, Bitcoin became oversold in June following a multibillion-dollar sell-off of 50,000 BTC by the German government. This sell-off, stemming from a 2020 police sting, caused Bitcoin prices to drop from over $70,000 in early June to below $55,000 in July. ARK suggests that miner capitulation indicates a potential bullish reversal.
Despite the sharp sell-off, investor interest in Bitcoin ETFs remains strong. As of June 30, the drop in Bitcoin's spot price exceeded the 30-day percent change in BTC ETF flows by 17.3%. July has seen significant net inflows into BTC ETFs, with $1.35 billion added in the week ending July 15. BlackRock’s iShares Bitcoin Trust (IBIT) alone saw $107 million in inflows on July 18.
Will Bitcoin Price Breaks Its All-Time-High?
On the technical front, the Bitcoin price remained in the bullish zone above the key exponential moving averages, which pointed to the bulls’ dominance in the price.
BTC price rose by almost 15 last week. 05% with a strong bullish signal. RSI also provided a bullish bias as it was close to the overbought level at 64. 34.
At the time of writing BTC price was trading at 66,623 with a minor intraday drawdown of -0. 12%. At the moment, it has a market capitalization of $ 1. 31 Trillion and a 24-hour trading volume of 34. 19 Billion.
However, there is a possibility that the BTC prices will encounter volatility in the near term because of the liquidation transactions from the creditors of Mt. Gox. The Mt. Gox exchange that collapsed in 2014 and declared bankruptcy has begun to repay its creditors.
Conclusion
Even though there has been notable buying pressure in the BTC ETFs and a bullish technical signal, the Bitcoin prices may experience short-term volatility from liquidation transactions from Mt. Gox creditors. Still, the general mood is bullish, large financial companies continue to enter the market, and experts expect the growth of Bitcoin and Ethereum ETFs.
