Bitcoin exchange-traded funds, or spot bitcoin funds, saw their highest inflows on July 6 after the price of bitcoin fell sharply, to below $55,000, during the Fourth of July holiday in the United States.
The latest data indicates an inflow of $143.1 million into these investment vehicles.
Leading the charge is the Fidelity Bitcoin ETF (FBTC), which has attracted $117 million. Next in line is the Bitwise Bitcoin ETF (BITB), which has seen $30.2 million inflows, contributing to its impressive growth in holdings, which now exceed 38,000 bitcoins.
ETFs ARKB and HODL also announced significant contributions, receiving $11.3 million and $12.8 million, respectively.
In contrast, the Grayscale Bitcoin Trust (GBTC) saw net outflows of $28.6 million, which is contrary to the overall positive trend observed in the market.
Hunter Horsley, CEO of Bitwise Asset Management, shared insights on X regarding the strategic acquisitions his team made in Bitcoin at exceptionally low costs of less than half a basis point, confirming their operational efficiency.
Horsley expressed bullish expectations for Bitcoin, and considered the recent price decline as a useful entry point for investors.
“The outlook for Bitcoin has never been stronger. For many who have not yet been exposed, this week represents an opportunity to buy on the dip,” he commented.
Despite short-term market volatility, the first week of July saw over $66 million in inflows into BITB. This upward trend in investor participation reflects continued confidence in Bitcoin’s long-term value.
Meanwhile, the recent drop in the price of Bitcoin, which fell below $55,000 on July 5, is directly linked to developments involving the Mt. Gox delisting. Over 47,000 Bitcoins, worth an estimated $2.6 billion, were moved to a new wallet as Mt. Gox prepared to receive a massive $9 billion payment.
At the time of writing, Bitcoin is trading at $56,826, a level last seen in February, when the largest cryptocurrency by market cap surged to an all-time high.