Bitcoin ETF Trading Hits $2.13B Daily: What’s Next?

• Bitcoin ETFs see a 72% surge in daily trading volumes, reflecting strong investor interest amid market volatility.
• BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund lead in ETF inflows, signaling growing institutional confidence.
• Germany’s BKA sell-off of $850M in Bitcoin since July underscores market liquidity challenges despite ETF inflows.

Investors have shown a renewed interest in Bitcoin exchange-traded funds (ETFs) throughout July, despite lingering market uncertainties. Data from leading financial analytics firms reveals a substantial increase in daily trading volumes among the largest Bitcoin ETFs, reflecting a growing appetite for cryptocurrency investments.

As per Santiment, a top analytic firm, since the beginning of July, the average daily trading volume among the seven largest Bitcoin ETFs has surged to $2.13 billion, marking a notable 72% increase from the previous week’s average of $1.24 billion. This spike in trading activity coincides with significant net inflows into US-listed spot Bitcoin ETFs, totaling over $650 million in just three trading days starting July 5.

According to farside data, the total net inflows for July 10 alone amounted to $147.4 million. This figure underscores a robust investor sentiment toward Bitcoin ETFs despite the cryptocurrency struggling to surpass the $60,000 mark in recent weeks.

Analysts remain cautiously optimistic about the potential impact of ETF investments on Bitcoin’s price trajectory. In an X thread, Sina G, co-founder of Bitcoin custody consultancy firm 21st Capital noted that previous bull runs in Bitcoin, including the surge from $16,000 to $73,000 earlier this year, were largely driven by ETF-related speculation and investor sentiment.

The market has been overshadowed by significant sell-offs from Germany’s Bundeskriminalamt (BKA), which seized nearly 50,000 Bitcoin earlier this year in connection with an investigation into online piracy. 

Recent reports from Arkham Intelligence indicate that BKA has sold over $850 million worth of Bitcoin since early July, impacting market liquidity and contributing to Bitcoin’s price volatility. Despite these challenges, the influx of capital into Bitcoin ETFs reflects a broader trend of institutional adoption and investor confidence in the long-term potential of cryptocurrencies.