Bitcoin Investors Hold Strong as BlackRock's IBIT Pulls in $526 Million

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Decrypt
07-23

BlackRock's iShares Bitcoin Trust (NASDAQ: IBIT) reported inflows of $526.7 million in investor funds on July 22, the highest single-day tally since March.

The investment giant’s haul contrasts starkly with the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors.

The surge in IBIT's inflows comes as Bitcoin traded above the psychologically important $68,000 level just a day back, about 8% away from its all-time high of $73,737.94, according to data from CoinGecko.

Bitcoin has since pulled back from its local high and is currently trading at around $66,500, down 1.6% on the day.

Fresh on-chain data analysis from CryptoQuant indicates a notable reluctance among Bitcoin holders to sell their assets—pointing to growing investor confidence in the cryptocurrency's long-term prospects amid renewed interest in BlackRock's Bitcoin ETF.

Data from CryptoQuant indicate that the number of deposit addresses for Bitcoin across all exchanges has plummeted to a low of 25,000—suggesting that investors are increasingly opting to hold onto their Bitcoin rather than selling, potentially in anticipation of further price appreciation.

"The reduction in deposit addresses to 25,000 is a critical signal that may indicate a shift in the strategy of holding Bitcoin among investors," the CryptoQuant report states. "This change in behavior could be driven by factors including increased institutional investment in cryptocurrencies."

The report further suggests that a decreased willingness to sell assets could reduce the supply of Bitcoin on the market, which, coupled with steady or increasing demand, could fuel further price increases.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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