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Institutions Buy BTC While Market Falls

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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