Despite Bitcoin’s 14% downturn over the last month, long-term holders and investors are continuing to buy Bitcoin and its spot ETF. Below, we will look at the recent inflow of over $660 million in spot Bitcoin ETFs and the reasons behind the inflow.
Spot Bitcoin ETFs Record Over $660 Million Inflow in 3 Days
In the past 3 days, starting from July 8th to 10th, spot Bitcoin ETFs recorded a huge Inflow of over $660 million. According to data from CoinMarketCap, there was an inflow of $294.80 million on July 8th with no outflows. IBIT shares ETF contributed to the majority of these inflows with a significant $187 million addition. Furthermore, Fidelity ETF followed suit with a $61 million inflow, and Grayscale came third at a $25 million inflow. Other important mention is ARKB at $8.4 million.
On July 9th, spot Bitcoin ETFs recorded an inflow of around $258.60 million. However, there were outflows on this day. The outflows were at $42.20 million, bringing the total worth of net flow to around $216.40 million. Like the previous day, IBIT took the first position in flows with $121 million money coming in. Fidelity’s ETF came second at $91 million and ARKB third at $43.3 million. Grayscale ETF was out only with major outflows at $37.50.
Even though inflows on the 10th of July seemed to be lower than on the 9th, outflows were much better than before. There was a $155.60 million inflow and a $8.20 million outflow, with Grayscale having the only outflow for the day. Combined, there have been over $660 million in inflows within the past three days, which is a good development for the sector.
What’s Behind the Massive Inflow of Spot Bitcoin ETFs?
Certain factors contributed to the recent massive inflow of funds in spot Bitcoin ETFs, reaching a peak of over $620 million worth of investments in the past 3 days. These factors include:
Increased Bitcoin Accumulation
Increased Bitcoin accumulation in the past few days is one reason behind the inflow in spot Bitcoin ETFs. According to data from CryptoQuant, long-term holders of Bitcoin have been accumulating the digital asset at rates not seen since April 2023. Furthermore, the massive surge in Bitcoin holdings has not been seen since June 07, 2024. Apparently, this data starts from when the spot Bitcoin ETFs received approval.
Speculations of a Bullish August
Many top names within the crypto secure expect Bitcoin to be extremely bullish in August, leading investors to take strategic stands in the ETF decide sector. JPMorgan’s Nikolaos Panigirtzoglous said they expect Bitcoin and the broader crypto market to make a bullish return in August.
“The reduction in the estimated net flow largely driven by the decline in Bitcoin reserves across exchanges over the past month,” JPMorgan’s Nikolaos Panigirtzoglous said.
Conclusion
Spot Bitcoin ETFs are having a great period in the crypto market after recording three consecutive days of massive inflows. According to data from CoinMarketCap, there was an inflow of more than $660 million within the three-day period. But within that time, too, IBIT emerged as the winner in the amount of inflows, while Grayscale took the majority of the outflows. The recent development is due to the increase in the number of people investing in Bitcoin and its spot ETF. Data from CryptoQuant highlights the increased Bitcoin investments.
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