The price of Bitcoin has not made a great start to the third quarter of 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 benefitting from the recent dip in prices, having posted a positive week in terms of capital flow.
According to the latest data, a significant amount of capital flowed into the Bitcoin investment products despite the poor performance of the flagship cryptocurrency.
$238 Million Flows Into US Bitcoin Spot ETFs In The Past Week
On Friday, July 5, Bitcoin spot ETFs witnessed a net inflow of more than $143 million, the largest net inflow seen by the market since June 6 — about a month ago. According to data from Coinglass, most of the capital inflow was contributed by Fidelity’s FBTC.
Breaking down the data, only four of the 11 Bitcoin spot ETFs saw inflows, culminating in up to $172 million, with approximately 80% of that total going to Fidelity’s FBTC fund. Bitwise (BITB), VanEck (HODL), and Ark 21Shares (ARKB) make up the remainder of the inflows on Friday.
Grayscale’s GBTC saw an outflow of about $29 million, while the remaining funds saw no significant capital flow. Ultimately, this capital influx marked a positive end to the week and a complete turnaround from consecutive days of outflows before the July 4th holiday.
Based on data from Coinglass, the past week saw a net inflow of $238.4 million for the Bitcoin spot ETFs in the United States. This suggests that institutional investors are loading their bags despite the recent downturn experienced by the premier cryptocurrency.
In a recent post on the X platform, Bitwise CEO Hunter Horsley mentioned that the firm’s portfolio management team efficiently acquired Bitcoin at less than half of 1 basis point of cost. This means that the transaction cost was less than 0.005% of the purchase amount.
Horsley also highlighted that the asset management firm Bitwise now holds over 38,000 Bitcoin for investors. The CEO added:
The outlook for Bitcoin has never been stronger. For many who don’t yet have exposure, this week is a chance to buy the dip.
Bitcoin Price At A Glance
As of this writing, the price of Bitcoin continues to close in on the $60,000 mark, trading around $58,133. This reflects a nearly 3% price increase in the past 24 hours. On the weekly timeframe, though, the flagship cryptocurrency is still down by 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
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