Bitcoin Spot ETFs Take In $79M On Thursday: Why Are They Suddenly On A Roll?

Author: Ivan Crnogatić | July 12, 2024 08:45am

Bitcoin (CRYPTO: BTC) spot exchange-traded funds (ETFs) experienced net inflows of nearly $79 million on Thursday, extending their positive streak to five consecutive days.

What Happened: According to The Block, BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) led the inflows with $72.09 million. This ETF, the largest by net asset value, also had the highest trading volume on Wednesday, reaching $725.61 million.

• Fidelity's Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) saw net inflows of $32.69 million.
• Bitwise’s Bitcoin ETF (BATS:BITB) attracted $7.53 million,
• The ETF from Ark Invest and 21Shares (BATS:ARKB) added $4.31 million.
• Grayscale's (OTC:GBTC) GBTC experienced net outflows of $37.69 million on Wednesday.
• Six other funds reported zero flows.

Overall, $1.31 billion worth of value was traded in U.S. spot bitcoin funds on July 11. Despite the recent inflows, trading volumes remain significantly lower than in March, when they exceeded $8 billion on several days.

U.S. issuers are still awaiting approval from the Securities and Exchange Commission for their latest amended registration statements for spot Ethereum ETFs. One issuer told The Block that the next communication from the SEC is expected to be highly informative regarding the anticipated launch.

Read Also: SEC Ends Investigation Into Paxos, Marking Win For Crypto Industry

Why It Matters: The recent inflows into bitcoin ETFs suggest growing investor confidence, despite the lower trading volumes compared to earlier in the year. The SEC’s decision on spot Ethereum ETFs could further influence trading volumes and investor sentiment and potentially prompt a rally for the second-largest cryptocurrency.

On July 11, CryptoQuant reported a significant outflow of 35,486 BTC from BitMEX, marking the second-largest outflow in the exchange’s history. Historically, such large outflows have been linked to bullish trends, as they often indicate that major investors are moving their holdings to cold storage, thereby reducing immediate selling pressure.

What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Is A Bitcoin Pump Imminent? This Indicator Says Yes

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock

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