Bitcoin ETFs Continue Hot Streak With $216 Million Inflows Following Sell-Off Scare

• U.S. spot Bitcoin ETFs purchased 3,760 BTC on July 9, 2024.
• BlackRock’s IBIT leads daily inflows.
• Grayscale’s GBTC dominance wanes amid persistent Outflows

Institutional appetite for spot Bitcoin (BTC) exchange-traded funds (ETFs) appears to be reaching a fever pitch as they record their third consecutive day of net inflows.

Institutions are eager to buy BTC while it is under $60,000, and their recent $654 million spending spree could be a bullish signal despite ongoing price volatility.

BTC ETF Hot Streak

On July 9, U.S. spot BTC ETFs saw a third day of positive flows, with four of the eleven funds adding 3,760 BTC, or $216.4 million, to their balance sheets.

As per data from Farside Investors, the top gainers were BlackRock’s iShares Bitcoin Trust (IBIT), which drew in $121 million, and the Fidelity Wise Origin Bitcoin Fund (FBTC), which pulled in $91 million. ARK 21Shares Bitcoin ETF (ARKB) saw comparatively modest inflows of $43.3 million, and the WisdomTree Bitcoin Fund (BTCW) trailed behind with $3.3 million.

To no one’s surprise, the Grayscale Bitcoin Trust (GBTC) saw yet another day of outflows, losing $37.5 million from its fund.

BlackRock Dominance

Since the BTC ETF frenzy began, BlackRock’s iShares Bitcoin Trust ETF (IBIT) has been the biggest winner.

Having only recorded a single day of outflows, the IBIT fund now commands around $18 billion in net assets. IBIT is the largest BTC ETF , some $3 billion ahead of its nearest competitor, GBTC.

Grayscale’s GBTC has suffered significant outflows since its inception. While IBIT has consistently reeled in net inflows, GBTC has conversely shed $18 billion from its fund.

At present, GBTC has over $15 billion in net assets, and if its outflow troubles persist, it could lose its spot to FBTC, which has $10 billion in its purse.

Supply and Demand

The current dynamic appears to be favoring those with a bullish outlook, especially those who are fine with the insatiable appetite of BTC ETF investors.

Now that there is a legitimate sense of supply shock  hitting the markets, Germany’s timely sale of seized Bitcoins is believed to be slowly resupplying a starved market.

Speculators seem to believe that if Germany continues at its current rate, their entire stash will have finally made its way back to the market.

With the looming Mt. Gox repayments set to further flood the market with “fresh” BTC tokens, we may see these supply and demand dynamics shift. However, this largely depends on whether or not Mt. Gox creditors are eager to sell their reclaimed BTC or HODL in hopes of further price action.