Institutional investors in the US have been snapping up Bitcoin as the crypto market has slumped, leading to the largest daily inflow into a BTC ETF in a month.
On July 8, more than $295 million was received into Bitcoin spot exchange-traded funds (ETFs).
Spot Bitcoin ETF Cash Flow Dynamics. Source: Farside Investors
The last time spot Bitcoin ETFs raised such a significant amount was June 5, when the funds received more than $488 million.
Since its launch on January 11 this year, issuing companies have raised a total of $15.06 billion. The largest US fund is currently considered to be IBTC, which manages $18.5 billion in the leading cryptocurrency by market cap.
What’s up with bitcoin?
Investors are buying up shares of spot Bitcoin ETFs amid a crypto market slump. Over the past two weeks, the price of BTC has fallen by 6.7%. At one point, the cryptocurrency rate sank to a minimum of $53,600.
According to CoinGeckoat the time of writing, Bitcoin is trading at $57,332. Over the past 24 hours, the asset’s quotes have grown by 0.3%.
The fall of the crypto market is associated with several factors:
- Concerns surround Mt. Gox, which will soon begin paying out creditors who lost money when the exchange was hacked in 2014. The trading platform is expected to distribute $8.5 billion in BTC, which creditors will quickly sell off.
- The German government continues to sell bitcoin. According to Arkham Intelligence, German authorities have already transferred more than 26,200 BTC worth $1.5 billion to centralized exchanges and unknown addresses.
However, many analysts agree that all the fears that have flared up in the crypto community may be exaggerated.
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Source: Cryptocurrency
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