Bitcoin hits $66k as Bitcoin ETFs witness record $422.5m inflows

The price of Bitcoin surpassed $66,000 on July 17, following a record $422.5 million inflow into 11 spot Bitcoin exchange-traded funds (ETFs) in the United States, the most since June 5.

BlackRock’s iShares Bitcoin Trust led the rally with $260 million in contributions from Bitcoin investors on July 16, accounting for more than half of daily net inflows into spot Bitcoin ETFs. Data from Farside Investors revealed that this was the eighth consecutive day of positive net inflows for U.S. spot Bitcoin ETFs.

Bitcoin ETF Flow (million USD) – 2024-07-16

TOTAL NET FLOW: 422.5
(Temporary data)

IBIT: 260.2
FBTC: 61.1
BIT: 17.3
ARKB: 29.8
BTCO: 20.5
EZBC: 9.4
BRR: 2.2
HODL: 22
BTCW: 0
GBTC: 0
DEF: 0

For full data and disclaimers, visit: https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) July 17, 2024

Fidelity Wise Origin Bitcoin Fund recorded the second-highest inflow among U.S. spot Bitcoin ETF issuers at $61.1 million, followed by ARK 21Shares Bitcoin ETF at $29.8 million.

VanEck Bitcoin ETF and Invesco Galaxy Bitcoin ETF also saw inflows of over $20 million. In contrast, spot Bitcoin ETFs issued by Grayscale, Hashdex, and WisdomTree failed to record any inflows.

BlackRock’s Bitcoin holdings have surged above $20 billion following a 3% price increase since trading hours closed on Monday and its latest purchase of 4,004 Bitcoin.

The fund became the world’s largest Bitcoin ETF, with assets under management exceeding $20 billion in late May, as Bitcoin approached $70,000.

The ETF Store president Nate Geraci praised BlackRock’s milestone, while criticizing claims that only “corrupt retail” investors would buy Bitcoin products. The milestone coincided with BlackRock CEO Larry Fink describing Bitcoin as a “legitimate” financial instrument that can act as a shield against currency depreciation.

Crypto whales have also been active and have accumulated significant amounts of BTC. On July 15, data from CryptoQuant showed that Bitcoin accumulating addresses received approximately 10,800 BTC, worth approximately $656.64 million.

CryptoQuant CEO Ki Young Ju shared insights into the behavior of Bitcoin holders on X. In the past 30 days, custodial wallets that usually do not see outflows have accumulated 85,000 BTC. Ju noted that while some market participants are panic selling, others are taking the opportunity to buy.

Permanent owners, mostly escrow wallets with no exit, have accumulated 85 thousand #Bitcoin Within the last 30 days.

These wallets are neither ETFs, nor exchanges, nor miners. During the same period, 16K BTC flowed out of ETF holdings.

While some are panic selling, “others” are buying. pic.twitter.com/t9oN6pVwST

— Ki Young Ju (@ki_young_ju) July 10, 2024

Bitcoin (BTC) is currently trading at $65,340, up 11.2% in the past week, after falling to a near five-month low of $53,600 on July 5. The price drop was driven primarily by concerns over the German government selling around 50,000 Bitcoins and news that Mt. Gox is set to pay more than $9 billion to creditors.

The cryptocurrency market is also awaiting SEC approval of spot Ether ETFs, with many expecting a decision before the end of July.

The SEC has reportedly issued final instructions to asset managers preparing to launch Ether ETFs.

Bloomberg ETF analyst Eric Balchunas reported that the commission has instructed issuers to submit their final S-1 filings by July 16.

Balchunas expects the SEC to formally approve the S-1s after trading hours close on July 22, allowing spot Ether ETFs to begin trading on July 23.