Bitcoin exchange-traded funds (ETFs) experienced significant growth with nearly $300 million in net inflows on Monday, marking the highest buying activity since early June when the cryptocurrency traded above $70,000. This surge in inflows indicates renewed investor interest in the crypto market.
According to SoSoValue data, BlackRock’s IBIT led the way with almost $180 million in net inflows, followed by Fidelity’s FBTC. Surprisingly, even Grayscale’s GBTC, known for its outflows, recorded over $25 million in purchases. On the other hand, ETFs from Invesco, Franklin Templeton, Valkyrie, WisdomTree, and Hashdex did not show any significant inflow or outflow activity during this period.
This influx of funds comes at a time when Bitcoin faces selling pressure from various sources, including repayments linked to the defunct crypto exchange Mt. Gox and substantial BTC movements by a German government entity. Despite these selling pressures, some investors perceive the current market conditions as a buying opportunity, as noted in a report by investment firm CoinShares.
CoinShares stated, “Digital asset investment products received inflows totaling US$441m, with recent price weakness triggered by Mt. Gox and the German Government selling pressure likely being interpreted as a buying opportunity.”
While the inflows into Bitcoin ETFs have surged, the trading volumes in Exchange Traded Products (ETPs) remained relatively low at US$7.9 billion for the week. This lower volume is attributed to the typical seasonal pattern of reduced trading activity during the summer months.
Looking ahead, market analysts anticipate July to be a generally bullish month for the crypto market. Historically, July has seen a medium return of 9%, and this positive trend is expected to continue due to the increasing institutional interest and growing adoption of cryptocurrencies.