Spot Bitcoin ETFs Gain $650M Inflows Despite Germany’s $850M BTC Sale

Rameesha Sajwar
By Rameesha Sajwar Add a Comment
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Spot Bitcoin ETFs

Investors have reportedly funnelled over $650 million into United States-listed spot Bitcoin exchange-traded funds (ETFs) since July 5. Despite this, it wasn’t sufficient to counter Germany’s BTC selling spree. Over the past three trading days since July 5, Bitcoin investors have directed substantial funds into spot Bitcoin ETFs in the United States. The news sources have reported that in total, these inflows add up to $654 million.

The 11 spot Bitcoin ETFs recently saw another strong net inflow day. BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust, attracted $121 million in inflows, while Fidelity’s Wise Origin Bitcoin (BTC) Fund garnered $91 million. Across all US-based spot Bitcoin ETFs, total net inflows on July 9 reached $216.4 million, equivalent to 3,760 Bitcoin, as per data from Farside Investors.

“ETFs bought 3,760 #Bitcoin ($216.4m) on July 9,” reported Thomas Fahrer from heyapollo.com.

Spot Bitcoin ETFs: Recent Bitcoin Price Trends 

The surge in ETF investments allegedly includes $294.8 million on July 8 and $143.1 million on July 5. However, despite these investments, Bitcoin has struggled to climb back over $60,000 since July 4. At the time of writing, the cryptocurrency trades at $59,165, reflecting a nearly 15% decline over the past month, according to TradingView.

Spot Bitcoin ETFs
Spot Bitcoin ETFs

Analysts’ Optimism on ETFs’ Impact

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Some analysts remain optimistic that ETFs will boost Bitcoin’s price, as seen before March when Bitcoin hit a new all-time high. Sina G, co-founder and chief operating officer of Bitcoin custody consultancy firm 21st Capital, commented on this phenomenon:

“The run-up from $16K to $73K was largely driven by the ETFs, following a buy-the-rumor buy-the-news phenomenon. Up to mid-March ETF flows were very strong, and the market moved up. Since then, ETFs slowed down, and bankruptcy outflows took over, causing weak price action to go down to $56K,” wrote Sina G.

Germany’s BTC Selling Spree

However, the inflows to US Bitcoin ETFs have not been enough to counterbalance Germany’s recent Bitcoin selling spree. Germany’s Bundeskriminalamt (BKA), the country’s federal criminal police, seized nearly 50,000 Bitcoin in mid-January amid an investigation into a movie pirating website. Since July 5, the BKA’s wallet has reduced its BTC holdings by more than $850 million. According to Arkham Intelligence, large amounts of Bitcoin are being transferred between wallets owned by centralized exchanges and market makers.

Currently, the BKA’s wallet holds 23,960 Bitcoin worth $1.4 billion, which is less than half of the total Bitcoin initially seized from the film piracy site Movie2k in mid-January. Onchain data from Arkham shows that the BKA began selling Bitcoin on June 19 and intensified its efforts at the beginning of July.

Conclusion

In summary, while there has been a significant influx of investments into spot Bitcoin ETFs, it has not been sufficient to counteract the impact of Germany’s BTC selling spree. Spot Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund have seen substantial inflows, yet Bitcoin prices remain under pressure. Analysts are hopeful that continued ETF investments will drive up Bitcoin’s price, though recent trends highlight the complex dynamics at play in the crypto market. The BIT Journal continues to watch and report these developments, providing the latest crypto updates on major currencies like Bitcoin (BTC) and Ethereum (ETH). 

 
Disclaimer

The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.

You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.

Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.

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