Bitcoin ETFs Attract $533.6M Inflows as Institutional Interest Peaks: Report

Institutional investors have reignited their interest in spot Bitcoin ETFs, registering the largest daily inflow since June 4. According to preliminary data from Farside Investors on July 22, $533.6 million flowed into four of the eleven listed spot BTC ETFs in the United States. This marks the 12th consecutive day of inflows, highlighting a growing trend among institutional players.

According to a recent report, retail trading on spot markets is currently moving in the opposite direction. The BlackRock iShares Bitcoin Trust (IBIT) dominated the scene, securing 98.7% of the total inflows, which amounts to $526.7 million or 7,759 BTC. This inflow marks BlackRock’s most significant day since March, emphasizing its stronghold in the market.

Currently, IBIT holds 327,179 BTC, valued at around $22 billion. This solidifies IBIT’s position as the world’s leading BTC fund, surpassing Grayscale’s GBTC, which holds 272,061 BTC, by a substantial $3.5 billion.

Spencer Hakimian, founder of Tolou Capital Management, noted that IBIT has outperformed the Invesco QQQ ETF, which tracks the Nasdaq-100’s performance. Hakimian further predicted that IBIT could soon overtake Vanguard’s Total Stock Market ETF.

Meanwhile, Fidelity’s FBTC experienced a minor inflow, and the VanEck Bitcoin Trust (HODL) saw an outflow, but BlackRock remained the dominant player of the day. This substantial movement builds on last week’s momentum, which saw more than $1.2 billion inflows over five trading days.

This surge in institutional investment coincides with the upcoming launch of spot Ethereum ETFs, scheduled to begin trading the following day. Analyst Willy Woo suggested that this could impact Bitcoin negatively in the short term.

Reflecting on past trends, Bitcoin experienced a 62% surge following the launch of spot Bitcoin ETFs in mid-January, reaching an all-time high by mid-March. If Ethereum follows a similar pattern, it could potentially top out at $5,300 by late September.

Meanwhile, renowned crypto analyst Altcoin Daily recently remarked on X that despite ETFs accumulating over 1 million BTC, Bitcoin’s price has not risen significantly. This observation adds a layer of intrigue to the current market dynamics.

The overall crypto market capitalization has decreased by 0.91% over the past 24 hours, settling at $2.43 trillion. Bitcoin saw a 1.21% drop, falling to the $66,600 level but finding support at this level. Additional support is anticipated at $65,000 should the market continue to decline.