Bitcoin achieved a significant milestone on July 17, breaching the $66,000 mark amidst a flurry of activity in the cryptocurrency market. This surge was propelled by a record influx of $422.5 million into eleven spot Bitcoin exchange-traded funds (ETFs) in the U.S., marking the highest daily inflow since June 5.
Leading this surge was BlackRock’s iShares Bitcoin Trust, which attracted a staggering $260 million from Bitcoin investors on July 16 alone, constituting more than half of the total net inflows into U.S. spot Bitcoin ETFs for the day. According to data from Farside Investors, this marked the eighth consecutive day of positive net inflows for these ETFs. Following closely behind, the Fidelity Wise Origin Bitcoin Fund recorded the second-highest inflows among U.S. issuers at $61.1 million, followed by the ARK 21Shares Bitcoin ETF with $29.8 million.
Meanwhile, the VanEck Bitcoin ETF and Invesco Galaxy Bitcoin ETF also saw substantial inflows exceeding $20 million each. In contrast, ETFs offered by Grayscale, Hashdex, and WisdomTree did not report any inflows during this period.
BlackRock’s strategic acquisitions have bolstered its Bitcoin holdings to over $20 billion, further solidifying its position as the world’s largest Bitcoin ETF. This milestone was achieved amidst positive remarks from Nate Geraci, president of The ETF Store, who commended Bitcoin’s legitimacy as a financial instrument capable of hedging against currency devaluation. These sentiments echoed recent statements by BlackRock CEO Larry Fink, underscoring Bitcoin’s growing acceptance in traditional financial circles.
In parallel, cryptocurrency whales have been actively accumulating significant amounts of Bitcoin, with recent data from CryptoQuant revealing that accumulation addresses received approximately 10,800 BTC, valued at around $656.64 million, on July 15 alone. Ki Young Ju, CEO of CryptoQuant, highlighted the nuanced market dynamics where custodial wallets, typically devoid of outflows, amassed an impressive 85,000 BTC over the past month. This trend suggests a divergence in investor sentiment, with some panic selling while others capitalize on buying opportunities.
Bitcoin’s current price of $65,340 reflects an 11.2% increase over the past week, rebounding from a recent low of $53,600 on July 5. Market fluctuations during this period were influenced by concerns over the German government’s plan to sell nearly 50,000 Bitcoins and developments surrounding Mt. Gox’s impending repayment of over $9 billion to creditors.
Looking ahead, the cryptocurrency market is abuzz with anticipation over the potential approval of spot Ether ETFs by the U.S. Securities and Exchange Commission (SEC). Recent reports indicate that the SEC has issued final instructions to asset managers preparing to launch these ETFs, with expectations mounting for a decision by the end of July. Bloomberg ETF analyst Eric Balchunas predicted that the SEC would finalize approvals on July 22, paving the way for spot Ether ETFs to commence trading on July 23.
The latest developments underscore Bitcoin’s resilience and growing institutional adoption amidst a volatile market landscape, positioning it as a pivotal asset in the evolving global financial ecosystem.
