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Bitcoin ETF Traders Buy The Dip With Nearly $300M Inflows

Jul 8, 2024
    On Monday, the U.S.-listed spot ETFs witnessed nearly $300 million in new inflows.Investors seem to be bargain-hunting as temporary supply overhangs weigh over BTC‘s price.
As an analyst with extensive experience in the cryptocurrency market, I believe that Monday’s $300 million inflows into U.S.-listed spot bitcoin ETFs indicate a renewed interest from investors in buying the dip. The temporary supply overhangs that have been weighing on BTC‘s price seem to be enticing bargain-hunters, as evidenced by the strong buying activity in market leader BlackRock’s IBIT and Fidelity’s FBTC.As a crypto investor, I’ve noticed that Bitcoin ETFs saw significant demand on Monday, with approximately $300 million flowing in – the most substantial inflow since late June when BTC was trading above $70,000.
As a researcher analyzing the SoSoValue data, I discovered that BlackRock’s IBIT led the way with approximately $180 million in net inflows. Fidelity’s FBTC followed closely behind with significant buying activity as well. Notably, Grayscale’s GBTC, known for its outflows, recorded over $25 million in purchases during this period.

The ETFs from Invesco, Franklin Templeton, Valkyrie, WisdomTree, and Hashdex did not experience any new investments or withdrawals last [day/week/month].

Bitcoin ETF Traders Buy The Dip With Nearly $300M Inflows
Bitcoin experiences robust incoming transactions despite intense selling forces, stemming from pending repayments linked to the defunct cryptocurrency exchange Mt. Gox and recent large-scale BTC transfers by a German government entity to cryptocurrency platforms over the last month.

Some investors might be interpreting the recent selling as a chance to buy, according to CoinShares’ latest analysis on Monday.

“CoinShares reported that digital asset investment products attracted US$441 million in investments last week. The dip in prices caused by Mt Gox’s issues and the German government selling off may have been viewed as a chance for buyers. Nevertheless, ETP trading volumes were subdued at US$7.9 billion during the same period, which is consistent with the usual summertime decrease in activity.”

In simpler terms, traders often anticipate positive price movements in the cryptocurrency market during July based on historical trends, which have shown an average gain of around 9%. It is generally believed that this upward trend will persist.

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2024-07-09 10:30