Bitcoin ETF Investors Buy the Dip: Daily Inflows Hit $295M

United States-listed spot Bitcoin ETFs have seen their biggest day of inflows in over a month, despite the current slump in the crypto markets. This surge in interest comes as a welcome respite from the recent decline in Bitcoin’s value.

Daily inflows across all 11 funds reached $295 million on July 8.

The largest daily inflow was seen in BlackRock’s iShares Bitcoin Trust ETF, which raked in a staggering $187.2 million. Fidelity’s Wise Origin Bitcoin Fund followed closely, posting gains of $61.5 million. The Grayscale Bitcoin Trust also saw a rare day of positive price action, notching $25.1 million of inflows.

This marks the first day in the last three trading weeks that net inflows across all funds had been in the black. The last time ETFs saw such a significant influx of capital was on June 5, when they exceeded $488 million in fresh capital.

“The recent Bitcoin ETF inflows are a clear indication that investors are taking advantage of the dip in the market.”

The increase in interest in Bitcoin ETFs comes amidst wider market worries concerning hefty BTC sales from the German government and Mt. Gox creditor repayments.

The German government still holds approximately 27,460 BTC, worth $1.57 billion at current prices.

The German government has transferred over 26,200 BTC, worth $1.5 billion at current prices, to exchanges and market makers. Meanwhile, there are concerns that $8.5 billion in BTC could hit the market in the coming months as the collapsed Japanese crypto exchange Mt. Gox begins paying back creditors who lost their funds in a 2014 hack.

However, some analysts believe that fears around Mt. Gox Bitcoin sales may be overblown.

The price of Bitcoin has tumbled over the last two trading weeks, dropping as low as $53,600 on July 5, the first time the asset had traded below $54,000 since February.

The recent price action has left many wondering if the market has reached its bottom.

Despite the current uncertainty, the recent Bitcoin ETF inflows are a promising sign for the cryptocurrency market. As investors continue to buy the dip, it will be interesting to see how the market responds in the coming weeks.