bitcoin price has not had a great start to Q3 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 benefiting from the recent price drop, having recorded a positive week in terms of capital flow.
According to the latest data, a significant amount of capital flowed into bitcoin investment products despite the poor performance of the flagship cryptocurrency.
$238 million flowed into US bitcoin spot ETFs last week
On Friday, July 5, bitcoin spot ETFs saw a net inflow of over $143 million, the largest net inflow seen by the market since June 6, about a month ago. bitcoin-etf” target=”_blank” rel=”noopener nofollow”>Coinglass dataThe majority of the capital inflow was provided by Fidelity's FBTC.
Looking at the data, only four of the 11 bitcoin spot ETFs saw inflows, culminating in as much as $172 million, with roughly 80% going into Fidelity’s FBTC fund. Bitwise (BITB), VanEck (HODL) and Ark 21Shares (ARKB) made up the rest of Friday’s inflows.
Grayscale’s GBTC saw an outflow of approximately $29 million, while the remaining funds did not see any significant capital flow. All in all, this capital inflow marked a positive end to the week and a complete turnaround from the consecutive days of outflows leading up to the July 4 holiday.
According to data from Coinglass, a net inflow of $238.4 million into bitcoin spot ETFs in the United States was recorded last week. This suggests that institutional investors are filling their pockets despite the recent decline experienced by the leading cryptocurrency.
In a recent x.com/HHorsley/status/1809350708384391504″ target=”_blank” rel=”noopener nofollow”>Post on x Bitwise CEO Hunter Horsley mentioned that the company’s portfolio management team efficiently acquired bitcoin at less than half a basis point of cost. This means that the transaction cost was less than 0.005% of the purchase amount.
Horsley also highlighted that asset management firm Bitwise now holds more than 38,000 bitcoins for investors. The CEO added:
The outlook for bitcoin has never been better. For many who don't have exposure yet, this week is an opportunity to buy on the dips.
bitcoin price at a glance
At the time of writing, the bitcoin price continues to approach the $60,000 mark, trading around $58,133. This reflects a price increase of almost 3% over the past 24 hours. However, on the weekly time frame, the flagship cryptocurrency is still down more than 5%.
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The price of btc breaks above $58,000 on the daily timeframe | Source: BTCUSDT chart on x/sy38fAYn/" target="_blank" rel="noopener nofollow">TradingView
Featured image from Shutterstock, chart from TradingView
