Institutions Pile Into Spot Bitcoin ETFs as Inflows Hit a Net $295M High Since June 5 Amidst Market Volatility

As news of cryptocurrency market reports and huge Wall Street investments worldwide break with great ‘next-speed,’ institutional investors continue to wield significant influence over the market. Recent data reveals that Spot Bitcoin ETFs, which track the price of Bitcoin without the hassle of directly holding the cryptocurrency, have witnessed a 3-week high inflow since June. 

This surge in institutional buying suggests a growing appetite for Bitcoin among big money investors, even amidst market volatility and macroeconomic events.

Spot Bitcoin ETFs Record 3-Week High Inflows

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On Monday, Spot Bitcoin ETFs saw an impressive net inflow of $294.8 million, marking two consecutive days of substantial buying. This influx is particularly noteworthy given the recent German government BTC selloff and other key macroeconomic developments.

Despite the challenges posed by market fluctuations, institutional investors have remained bullish on Bitcoin. 

BlackRock’s IBIT recorded an inflow of $187.2 million, the highest seen in recent weeks, per Farside Investors report. This brings BlackRock’s net inflow to over $17.9 billion, with BTC holdings valued at nearly $18 billion. Fidelity Bitcoin ETF (FBTC) witnessed an inflow of $61.5 million on Monday, contributing to a total inflow of $9.42 billion.

Other ETFs such as Bitwise Bitcoin ETF (BITB), Ark 21Shares (ARKB) Bitcoin ETF, and VanEck Bitcoin ETF (HODL) also attracted inflows of $11 million, $8.4 million, and $1.6 million, respectively.

Grayscale Bitcoin Trust (GBTC), which had consecutive outflows in previous days, saw a reversal with an inflow of $25.1 million, suggesting strong demand from whale investors.

Image via: Farside Investors (on X)

Institutional investors — often referred to as “whales” in the crypto world due to their massive investment clout — have been accumulating Bitcoin at an impressive rate, with spot Bitcoin ETFs serving as their preferred vehicle. 

Following up, according to a Coinfomania report today, Iowa-based City State Bank and the Bank of New Hampshire have jumped on the Bitcoin ETF acquisition wagon, with healthy divestitures in BlackRock iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC). This gives more credence to the bullish trend by institutions.

Market Outlook and Expert Views

This bullish sentiment comes even as the German government recently offloaded substantial portions of its BTC holdings in a now three-week-long spree. Although these sell-offs have been repeated events, they haven’t deterred institutional investors. 

Additionally, some key macroeconomic events, like interest rate hikes, are looming on the horizon, which could potentially trigger market volatility. However, these concerns haven’t dampened the institutional enthusiasm for BTC.

Experts anticipate a Bitcoin rally to surpass $60,000, driven by institutional buying signals. Notably, Mt. Gox creditors are unlikely to sell their Bitcoin during this bullish phase. A fire sale from these creditors was previously seen as a potential threat to Bitcoin’s price stability. Over the past six months, US-listed Bitcoin ETFs have accumulated net inflows exceeding $14.7 billion. 

All in all, experts are now anticipating a more measured approach, with creditors opting to HODL (hold on for dear life) onto their Bitcoin rather than flooding the market.