Bitcoin ETF Inflows Surge: Institutional Interest Peaks
More than $1 billion has flowed into Bitcoin exchange-traded funds (ETFs) over the past three trading days, indicating a strong surge in investor interest. This influx of funds coincided with Bitcoin reaching a price of $66,000, despite ongoing market uncertainties. The participation of both institutional and individual investors reflects a bullish sentiment prevailing in the market.
Bitcoin ETF Investments and Whale Activities
According to Farside Investors, Bitcoin spot ETFs experienced significant inflows on Tuesday, with a total of over $422.5 million, the highest level in a month. The iShares Bitcoin Trust (IBIT) from BlackRock led the inflows with $260.2 million, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw inflows of approximately $61.1 million. Notably, there were no outflows from the Bitcoin ETF during this period.
Simultaneously, cryptocurrency whales have been actively accumulating large amounts of Bitcoin, with CryptoQuant data showing approximately 10,800 BTC and $656.64 million flowing into Bitcoin accumulation addresses on July 15. CEO Kiyoung Ki shared insights on Twitter, revealing that 85,000 BTC had been accumulated in the past month, mostly held in custodial wallets with minimal outflows.
Market Response to Mt. Gox Concerns
Recent concerns surrounding Mt. Gox resurfaced as the closed exchange transferred 91,755 Bitcoin (approximately $5.8 billion) to a new address, sparking worries among investors. However, experts like Mr. Joo and Galaxy Research Director Alex Thorne believe that the market may be overestimating the potential disruption from Mt. Gox redemptions. Mr. Joo explained that even if Mt. Gox were to sell $3 billion on Kraken, the impact would be manageable considering the overall market capitalization growth.
“Since 2023, $224 billion worth of Bitcoin has been sold, but the price has increased 350%. Even if Mt. Gox’s $3 billion sold on Kraken, it would only be equivalent to 1% of market capitalization growth in this bull cycle, a controllable amount of liquidity,” Mr. Joo stated.
Thorne’s analysis suggests that the selling pressure from Mt. Gox may not be as severe as feared, as creditors are likely to hold onto their assets to avoid hefty capital gains taxes. After deducting early payments, individual creditors are expected to receive around 65,000 BTC, with only a small fraction likely to enter the market compared to market concerns.
