Spot Bitcoin ETFs Rally with Record Inflows Amid Price Fluxes

Spot Bitcoin ETF Market Resurgence

On July 5, the total net inflow of spot Bitcoin ETFs was recorded at $143.1 Million with a cumulative net inflow of $14.76 Billion and $2.81 Billion in total value traded. After continuous outflows for two consecutive days, the Exchange Traded Funds (ETF) market took a U-turn and hit its highest Inflow for the July month.  

Source: SoSo Value 

A sudden drop in Bitcoin (BTC) price from $58,159.05 on July 4 to $53.906.57 on July 5 made individuals invest in the asset. Mt. Gox announced repayments in BTC and Bitcoin cash to the creditors, which created panic among the investors. Result of this, BTC recorded high liquidity and dropped by 6.90% in the past 7 days.   

At press time, BTC was hovering at $56,443.13, after an intraday spike of 3.80% with $1,113,026,569,483 in market cap and $40,925,317,394 in 24-hour volume.

Fidelity Wise Origin Bitcoin Fund (FBTC) and Bitwise Bitcoin ETF (BITB) played a key role in boosting the spot Bitcoin ETFs. However, they failed to cross the all-time high in net inflows of 1.05 Billion, recorded on 12 March 2024.

Fidelity and Bitwise: The Game Changers

At the time of writing, FBTC was trading at $49.43, after a decline of 6.51% in a day. The ETF  had a single-day inflow of $117.38 Million with $9.36 Billion in cumulative net inflow, showcasing investors' trust towards Fidelity and its offerings.

The second position was secured by BITB with $30.19 Million in net inflow and $2.08 Billion in cumulative net inflow. At press time, BITB was hovering at $30.82, after an intraday drop of 6.46%. Moreover, VanEck Bitcoin Trust (HODL) also performed well in terms of one-day net inflows, recording $12.79 Million and $543.11 Million in cumulative net inflow.

The data indicates that investors are confident about FBTC and BITB, they are more likely to invest in it, leading to more inflows.

Grayscale Bitcoin Trust (GBTC), alternatively, was the least trusted by investors and recorded a net outflow of $28.5713 Million on a single day. Since the launch of spot Bitcoin ETFs, GBTC remained an ordinary investment option for investors as individuals sell more shares.

According to Coinglass, Spot Bitcoin ETFs hold $3.21 Billion in total volume, $50.87 Billion in total market cap, and $50.08 Billion in assets under management (AUM). The surge in net inflows and positive trend underscores rising investor interest and a bullish outlook for BTC.

Conclusion  

The spot Bitcoin ETF market experienced a significant turnaround on July 5, with a record inflow for the month, despite a recent price drop in Bitcoin. This influx, led by FBTC and BITB, reflects growing investor confidence, although they did not surpass the all-time high set in March. The market's resilience, highlighted by the substantial inflows into FBTC and BITB, contrasts with the outflows from Grayscale Bitcoin Trust, indicating a shift in investor preference. 

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