The Bitcoin (BTC) Exchange-Traded Fund (ETF) market is showing signs of life, with all products attracting a combined $143.1 million in new money on Friday. This marks the highest inflow for spot BTC ETFs in the past two weeks, a welcome respite after a period of tepid investor interest.
Fidelity’s FBTC dominated the inflow chart, attracting a staggering $117.4 million. Bitwise’s BITB followed closely with $30.2 million, while VanEck’s HODL secured $12.8 million. Ark Invest’s ARKB rounded out the top four with $11.3 million.
However, Grayscale’s GBTC, a trust rather than an ETF, continued to experience outflows, losing $28.6 million on Friday. Notably, several prominent issuers, including BlackRock, Invesco Galaxy, Franklin Templeton, Valkyrie, and WisdomTree, saw zero net inflows for their spot BTC ETFs.
Record-Breaking, Yet Not Record-Setting
While the $143.1 million inflow is significant, it pales in comparison to the heady days of June when spot BTC ETFs raked in a staggering $1 billion. This surge had a ripple effect, boosting demand for other cryptocurrencies like Bitcoin Cash (BCH) and Rollblock (RBLK). It’s important to note that Bitcoin was trading at a much higher price point during that period.
Spot Bitcoin ETFs Outshine Gold
On a brighter note, spot Bitcoin ETFs achieved a significant milestone in early June by outperforming their gold counterparts. Ripple Labs CEO Brad Garlinghouse highlighted this trend, pointing out that it took the SPDR Gold Shares ETF three years to accumulate $10 billion in assets after its launch in 2004. In stark contrast, BlackRock’s IBIT, a spot Bitcoin ETF, achieved double that amount in just five months.
Bitcoin Price Movement: A Rollercoaster Ride
At the time of writing, Bitcoin has dipped 1.04% in the last 24 hours, currently sitting at $56,525.00. Despite this slight decline, trading volume has surged by 35.8% to $28 billion, with market capitalization holding steady at $1.1 trillion.
This price movement represents a minor recovery after a week that saw Bitcoin plummet from nearly $61,000 on Wednesday to under $54,000 on Friday. The primary culprit behind this drop? Concerns about a potential supply surge.
Mt. Gox and the Supply Threat
Recent news regarding the return of 137,890 BTC to creditors by the defunct Mt. Gox exchange has spooked investors, raising fears of a sell-off that could drive the price down.
Further fueling these anxieties was the German government’s transfer of 282.74 BTC to the Bitstamp exchange. These events highlight the potential for increased supply to overwhelm demand, impacting Bitcoin’s value.
Looking Ahead: Can Spot Bitcoin ETFs Regain Momentum?
While the recent uptick in inflows is encouraging, it remains to be seen if spot Bitcoin ETFs can recapture the glory days of June. Investor sentiment appears cautiously optimistic, but concerns about potential supply issues linger. The coming weeks will be crucial in determining the future trajectory of the spot Bitcoin ETF market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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