Bitcoin ETFs listed in the United States have netted a record inflow of $17 billion thus far. The consistent inflows in Bitcoin spot ETFs are indicative of persistent demand for regulated Bitcoin investment products.
BlackRock Tops the List in Bitcoin ETF Inflows
Data projections issued by Farside Investors confirmed that the majority part of the inflows were contributed by BlackRock’s IBIT ETF.
The total inflows for the asset management giant’s ETF listing accounted for $18.968 billion. The spot ETF listing of Fidelity trading with ticker FBTC recorded a net inflow of around $10 billion. On the other hand, Grayscale’s GBTC ETF reported an outflow of $18.694 billion.
As of 17th July, 11 US spot Bitcoin ETFs reported an inflow of $53.35 million with two consecutive weeks of positive inflows.
Meanwhile, the amount was overshadowed by $422 million net inflows as on 16th July. IBIT has retained leading ETF in terms of net inflows since listing with a $110.37 million inflow on the first day of listing and generated a trading volume of $1.21 billion.
The FBTC ETF recorded $2.83 million. On the other hand, GBTC and Bitwise’s BITB reported net outflows of $53.86 million and $6 million.
Spot Bitcoin ETFs Continue to Gain Traction Among US Investors
The trading volume for all spot Bitcoin ETFs listed in the United States as on 17th July was around $1.79 billion. However, for March the same metric reported $8 billion in daily trading volumes.
Prior to the existing highs, all ETF listings reported a total net inflow of $16.59 billion since debut. These changes in daily trading volume are indicative of the change in investment interests in different time brackets.
Since BlackRock announced filing for a Bitcoin ETF, the interest and demand for Bitcoin among mainstream investors have grown many folds. BlackRock Bitcoin reserves increased by $20 billion and analysts have attributed this increase to an addition of 4004 Bitcoins and the spot price rise in the flagship currency since the last trading session concluded on Monday.
The fund first crossed the $20 billion AUM threshold in May. Around the same time, Bitcoin prices reached a $70K price range. In this manner, it was propelled to the status of being the most talked about and popular Bitcoin ETF around the globe.
At press time, Bitcoin is trading around $65k market. This price has retracted 3% since 17th July. On 5th July Bitcoin price dropped to five-month lows of $53,600.
Bitcoin Price Volatility
There are some major factors associated with Bitcoin price volatility. The analysts claim that the recent surge of Bitcoin may be attributed to an impression among US investors regarding the devaluation of USD.
The pressure on the fiat stems from the ongoing speculation around the US presidential elections. The analysis was shared by crypto custodian firm Copper that noted the increased probability of the second term election of US president Donald Trump.
The analysis report retained that prospect has led to speculation among investors about USD price changes. In the last 7 days, Bitcoin gained 6% in spot prices going from $63,500 to $68,000 during a week. The analysts at Copper have retained that Bitcoin price has remained historically inversely proportional to USD index DXY.
The report shared projections from 2017 and 2021 rallies when Bitcoin recorded new ATHs in the context of USD weakening. The report also posits that Bitcoin price dynamics often indicate a complex link with USD performing weak to strong.
Fadi Aboualfa, the head of research at Copper, noted that investment firms tend to lean towards volatile assets to delivery growth results persistently.
The Copper report further stated that the DXY strength is not a direct contributor to Bitcoin ascend rather the spot prices are shaped by reigning perception among investors. The report noted during the first presidential term of Donald Trump, DXY declined by 7% characterized by tax cuts, boosted economic growth and the rise in fiscal deficit. Some pressure on the USD was sourced by trade restrictions and tariff awards.
