Record Inflows for Spot Bitcoin ETFs Following Post-July 4 Decline

Spot Bitcoin ETFs saw a significant surge in inflows on July 6, following the US Independence Day, during which Bitcoin’s price dipped below $54,000.

According to Farside monitoring, this marks their largest net inflow in a month, with a notable $143.1 million entering these financial products.

Strong inflows were led by the Fidelity Bitcoin ETF (FBTC), which received an impressive $117 million, underscoring strong investor confidence. Following FBTC, the Bitwise Bitcoin ETF (BITB) saw net inflows of $30.2 million, while the ARKB and HODL ETFs recorded inflows of $11.3 million and $12.8 million, respectively.

In contrast, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $28.6 million, differing starkly from the positive trend seen in other spot Bitcoin ETFs.

Despite recent market volatility, the significant inflows into these ETFs indicate that institutional investors and large-scale buyers are taking advantage of the dip to purchase Bitcoin at lower prices.

Prime opportunity to buy Bitcoin

Hunter Horsley, CEO of Bitwise Asset Management, noted in a post on the X social platform that his team was able to acquire Bitcoin efficiently, doing so at a cost of less than half a basis point.

Horsley also highlighted the strong outlook for Bitcoin, suggesting that current market conditions offer a valuable buying opportunity for both new and existing investors. “The outlook for Bitcoin has never been stronger. For many who don’t yet have exposure, this week is a chance to buy the dip,” he stated.

During the first week of July, BITB recorded inflows exceeding $66 million, increasing its total Bitcoin holdings to over 38,000. Despite short-term volatility, this growth indicates continued confidence in Bitcoin’s long-term potential.

Renowned Bitcoin critic Peter Schiff also weighed in on the resilience of Bitcoin ETF investors. Despite recent market fluctuations, Schiff observed that these investors remain steadfast, showing no signs of panic. “So far, there’s no sign of panic. It will likely take a much larger drop in Bitcoin before they finally capitulate,” Schiff commented.

He further predicted that a significant sell-off could occur soon, potentially leading to a capitulation among Bitcoin holders.

Bitcoin fell to $55,200 on Coinbase after the collapsed Japanese crypto exchange Mt. Gox transferred 47,229 Bitcoin—worth $2.71 billion at current prices—to a new wallet address in its first major transaction since May.

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