Over the past three trading days, over $1 billion has flowed into the Bitcoin exchange-traded fund (ETF), confirming high investor interest. This surprising influx of funds coincides with a time when the price of Bitcoin reached $66,000 despite continued market uncertainty.
This strong participation from institutional and individual investors reflects the bullish sentiment in the market.
Bitcoin ETF, cryptocurrency whales gather
Bitcoin spot ETFs saw significant inflows on Tuesday, bringing in over $422.5 million, the highest in a month, according to Farside Investors. BlackRock's iShares Bitcoin Trust (IBIT) led the inflows with $260.2 million.
Meanwhile, Fidelity's Wise Origin Bitcoin Fund (FBTC ) saw inflows of approximately $61.1 million. Surprisingly, no funds have flowed out of the Bitcoin ETF over the past three trading days.
Read more: How to Trade Bitcoin ETF: A Step-by-Step Approach
| date | IBIT | FBTC | BITB | ARKB | BTCO | EZBC | BRRR | HODL | BTCW | GBTC | DEFI | Sum |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| July 12, 2024 | 120.0 | 115.1 | 28.4 | 13.0 | 4.0 | 0.0 | 0.0 | 6.6 | 0.0 | 23.0 | 0.0 | 310.1 |
| July 15, 2024 | 117.2 | 36.1 | 15.2 | 117.2 | 7.9 | 3.7 | 0.0 | 3.6 | 0.0 | 0.0 | 0.0 | 300.9 |
| July 16, 2024 | 260.2 | 61.1 | 17.3 | 29.8 | 20.5 | 9.4 | 2.2 | 22.0 | 0.0 | 0.0 | 0.0 | 422.5 |
At the same time , cryptocurrency whales have also been active and amassed significant amounts of BTC. According to data from CryptoQuant on July 15, approximately 10,800 BTC, or approximately $656.64 million, was inflow into Bitcoin cumulative addresses.
Additionally, Kiyoung Ki, CEO of CryptoQuant, shared insights on the behavior of Bitcoin holders on X (formerly Twitter). Over the past 30 days, 85,000 BTC has been accumulated mainly in custody wallets with very few outflows. According to the state, some market participants are engaging in panic selling , while others are taking advantage of buying opportunities.
In this situation, concerns about Mt. Gox are rising again. The defunct exchange recently sparked fears among investors by moving 91,755 BTC (about $5.8 billion) to a new address. Soon after, Kraken announced that it would distribute Bitcoin and Bitcoin Cash (BCH) to those affected by the Mt. Gox collapse.
Despite these fears, experts like Zhu believe the market has overestimated the potential disruption from Mt. Gox redemption.
“Since 2023, $224 billion worth of Bitcoin has been sold, but the price has risen 350%. Even if Mt. Gox’s $3 billion is sold on Kraken, that would only amount to 1% of the market capitalization increase realized in this bull cycle, which is manageable liquidity,” Mr. Joo explains .
Alex Thorne, head of research at Galaxy, also argues that the impact on Bitcoin's selling pressure may be less than expected . His assessment comes from a detailed review of the bankruptcy filing and discussions with creditors.
Read more: Major Cryptocurrency Bankruptcy Cases: What You Need to Know
Thorne believes the payment terms could encourage creditors to hold on to the assets, given the significant capital gains taxes. After deducting early payments, individual creditors will receive approximately 65,000 BTC. Even if 10% of this is sold, only about 6,500 BTC will enter the market, much less than market fears.
