Spot Bitcoin ETFs Amass $654M in BTC Within Three Days

Key Takeaway: 

• U.S.-listed spot Bitcoin ETFs received over $650 million in investments over the last three trading days.
• On July 9, total net inflows across all ETFs reached $216.4 million, equivalent to 3,760 Bitcoin.
• Analysts expect these ETFs to drive up Bitcoin's price, similar to the lead-up to its all-time high in March.

Germany Dumps Bitcoin, Investors Pounce

According to recent data from Farside Investors, Bitcoin investors have funneled over $650 million into U.S.-listed spot Bitcoin ETFs over the past three trading days. 

On July 9, BlackRock's iShares Bitcoin Trust (IBIT) saw high inflows of $121 million, while Fidelity's Wise Origin Bitcoin (FBTC) attracted $91 million.

Additionally, Ark 21Shares (ARKB) recorded $43.3 million in inflows, and VanEck's ETF (HODL) garnered a more modest $3.3 million. 

These substantial inflows led to a total net inflow across all ETFs, reaching $216.4 million, equivalent to 3,760 Bitcoin. 

Bitcoin ETF Flow (US$ million) – 2024-07-09

TOTAL NET FLOW: 216.4
(Provisional data)

IBIT: 121
FBTC: 91
BITB: -4.7
ARKB: 43.3
BTCO: 0
EZBC: 0
BRRR: 0
HODL: 3.3
BTCW: 0
GBTC: -37.5
DEFI: 0

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) July 10, 2024

This surge followed impressive inflows earlier in the month, with inflows of $294.8 million on July 8 and $143.1 million on July 5.

This new wave of capital inflow into spot Bitcoin ETFs occurs amidst a significant Bitcoin selling spree by Germany's Bundeskriminalamt (BKA), the federal criminal police. 

Earlier this year, the BKA seized nearly 50,000 Bitcoin as part of a probe into Movie2k, a movie-pirating website.

So if I understand correctly Germany has seized 50,000 Bitcoin because someone has obtained it in criminal activity.

Now because they are government they can legally dump it on our heads no questions asked from exchanges?

Coinbase and Kraken should block them just for laughs.

— NurBrks (@NurBrks) July 8, 2024

On July 8, the German government's wallet transferred around 16,309 BTC to external addresses. This marked its largest single-day Bitcoin liquidation, according to data from Arkham Intelligence.

Some of these transfers were directed to major crypto exchanges such as Bitstamp, Coinbase, and Kraken.

TODAY: German Government selling up to $155M BTC

Today the German Government sent 2738.7 BTC ($155.3M) to likely exchanges/market makers including Kraken, Cumberland, 139Po (likely deposit for institutional/OTC service) and address bc1qu.

Of this, 1533 BTC ($87.6M) has been… pic.twitter.com/NcvqK6HKVZ

— Arkham (@ArkhamIntel) July 8, 2024

Despite these transfers, the German government's wallet still holds 23,960 Bitcoin, valued at approximately $1.4 billion. This is less than half the total Bitcoin originally seized from the film piracy site Movie2k in mid-January. 

German authorities' ongoing transfers have added to market volatility. Despite this, investors continue to invest in Bitcoin ETFs, showing sustained interest and confidence in Bitcoin's long-term value.

Spot Bitcoin ETFs Hot-Red Interest Anticipated to Boost BTC Price

The growing interest in spot Bitcoin ETFs is expected to boost BTC prices by increasing demand and providing institutional and retail investors easier access. As more funds flow into these ETFs, it signals growing confidence and mainstream acceptance of Bitcoin as a legitimate investment asset. 

This heightened demand is likely to drive up the price of Bitcoin, reflecting its expanding role in the global financial market.

Some analysts believe that the renewed interest in spot Bitcoin ETFs will help drive up the price of Bitcoin, similar to the surge observed in the months leading up to mid-March 2024 when Bitcoin reached a new all-time high. BTC has fallen 26% from its $73K high in March and 24% since June. 

Bitcoin trades at $58.75K at present time, reflecting a 3.40% decline over the past seven days.

BTC price is the low $60K price level

21st Capital's Sina G analyzed the previous BTC price surge from $16K to $73K, attributing the rally to the anticipation and subsequent launch of spot Bitcoin ETFs. This bull run, he argued, was fueled by a “buy-the-rumor, buy-the-news” phenomenon, where investors eagerly bought into market rumors and news.

According to Sina G, strong ETF inflows up until mid-March played an important role in propelling the market upward. 

A thread on the status of the #Bitcoin market

1/ Bitcoin has fallen -26% since the 73K top in March and -24% since June.

For perspective, this is on the lower end of spectrum when it comes to Bitcoin bull market corrections.

2/ THE ETFS: The run-up from $16K to $73K was… pic.twitter.com/RBAgK9r9vQ

— Sina 🗝️⚡ 21st Capital (@Sina_21st) July 8, 2024

However, the momentum slowed significantly after mid-March as ETF inflows dwindled and bankruptcy-related outflows took precedence, leading to a weakening in Bitcoin's price and a drop to $56K.

Sina G's analysis suggests that a resurgence in spot Bitcoin ETF inflows could potentially trigger a price recovery and spark a new bull run in the BTC market, similar to the pattern observed earlier in the year.