Investors Snap Up Bitcoin Spot ETFs with $216M Inflow Amid Market Dip

Strong Inflows for Bitcoin Spot ETFs
Spot Bitcoin exchange-traded funds (ETFs) recorded a combined net inflow of $216.33 million on Tuesday, marking the third straight day of positive flows.

Data from SoSoValue shows that BlackRock’s IBIT led the inflows, attracting $121.03 million, followed by Fidelity’s FBTC with $90.95 million. Ark Invest and 21Shares’ ARKB saw significant contributions of $43.3 million, while VanEck’s bitcoin fund noted $3.27 million in inflows.

In contrast, Grayscale’s GBTC, the second-largest bitcoin ETF, experienced outflows totaling $37.5 million, with Bitwise’s BITB also reporting net outflows of $4.72 million.

Trading activity across the 11 spot Bitcoin funds reached $1.19 billion on Tuesday, highlighting strong market engagement. Since their inception in January, these ETFs have amassed a substantial net inflow of $15.27 billion.

Bitcoin’s Market Performance
Bitcoin’s market performance mirrored the influx of institutional investments, with its price rising by 1.58% over the past 24 hours to $58,154, following a brief dip to around $54,000 last Friday.

Investors Capitalize on Buying Opportunities
Analysts suggest that recent selling pressures—from Mt. Gox repayments to Bitcoin liquidations by German authorities—have created attractive buying opportunities. CoinShares reported a significant $441 million inflow into digital asset investment products for the week, though trading volumes in exchange-traded products were modest at $7.9 billion, typical for the summer.

July is historically bullish for cryptocurrencies, with a median return of 9%, a trend expected to continue. SoSoValue data highlights a cumulative net inflow of $15 billion into Bitcoin, with daily inflows averaging $294 million. The total net assets across bitcoin ETFs currently stand at $49.32 billion, indicating sustained institutional interest despite recent market volatility.

Positive sentiment was further bolstered by news of a German government entity recovering over $200 million worth of bitcoin from exchanges like Kraken, Coinbase, and Bitstamp. On-chain trading volume has remained consistent with year-to-date averages, with daily BTC on-chain volume at around $41.1 billion and weekly volume at approximately $288 billion. The high on-chain selling pressure can be linked to the start of Mt. Gox repayments and ongoing selling by miners following the recent halving.

Australia Welcomes Second Spot Bitcoin ETF
Blockchain-focused asset manager DigitalX has received regulatory approval to launch its spot Bitcoin ETF, making it the second company to offer a Bitcoin ETF on the Australian Securities Exchange (ASX), following VanEck’s recent approval. The DigitalX Bitcoin ETF, under the ticker BTXX, will debut on July 12 at 10 am local time.

Miner Capitulation
Bitcoin miners are currently facing a critical phase known as “capitulation,” where they reduce operations or sell part of their mined Bitcoin and reserves to sustain operations, earn yield, or hedge their Bitcoin exposure amidst the market sell-off.