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The recent Bitcoin price slide has been a buying opportunity for major investors, particularly the BlackRock iShares Bitcoin Trust (IBIT). Over the past two days, IBIT has accumulated more than 5,000 Bitcoins (BTC), capitalizing on the lower prices. This influx of investment has also helped IBIT’s share price rebound after a sell-off in June.
IBIT Leads Bitcoin(BTC)ETF Inflows
Spot Bitcoin ETFs in the US have witnessed a surge in inflows recently, with IBIT leading the charge. On July 9th alone, IBIT raked in $121 million, adding a hefty 2,134 BTC to its holdings. The previous day saw even greater inflows of $187 million, translating to over 3,300 Bitcoins acquired as the price dipped to $53,500.
Analysts suggest these inflows indicate that Bitcoin ETFs are absorbing much of the selling pressure triggered by the German government’s recent Bitcoin disposal. The current inflows represent a three-week high for US Bitcoin ETFs, with long-term investors viewing the price drop as a chance to acquire Bitcoin at a discount.
Grayscale’s GBTC Sees Outflows
In contrast to IBIT’s strong inflows, Grayscale’s Bitcoin Trust (GBTC) experienced outflows of $37 million on Tuesday. This highlights the growing preference for spot Bitcoin ETFs, which offer more direct exposure to Bitcoin’s price movements compared to GBTC’s structure.
Also Read: Saxony Sells 50% Of Seized $3 Billion Bitcoin In Standard Legal Move
Bitcoin ETF Share Prices Rebound
The recent inflows have also positively impacted the share prices of spot Bitcoin ETFs. Despite the price of Bitcoin reaching a four-month low earlier this week, the share prices of these ETFs have seen a partial recovery, gaining between 2% and 5% over the past two days. IBIT’s share price, for instance, rose 2.49% on July 9th, reaching $32.96. While still trading at a 17% discount on the monthly chart, IBIT maintains a year-to-date gain of 23.77%.
The developments suggest that institutional investors are using the Bitcoin price dip as a buying opportunity through spot Bitcoin ETFs. This trend could continue to influence both Bitcoin’s price and the popularity of these investment vehicles.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
