Markets
Bitcoin (BTC) ETF Traders Buy Dip in Biggest Purchases Since BTC Trades at $70,000
Bitcoin spot (BTC) Exchange-traded funds (ETFs) saw nearly $300 million in net inflows on Monday, marking their highest buying activity since early June, when the cryptocurrency was trading above $70,000.
SoSoValue Data show that market leader BlackRock’s IBIT led the buying activity with nearly $180 million in net inflows, followed by Fidelity’s FBTC. Grayscale’s GBTC, infamous for its outflows, saw over $25 million in purchases.
ETFs offered by Invesco, Franklin Templeton, Valkyrie, WisdomTree and Hashdex saw no inflows or outflows.
The strong inflows come as bitcoin faces significant selling pressure from a variety of sources, including refunds tied to the defunct cryptocurrency exchange Mt. Gox and a German government agency that moved hundreds of millions of BTC to exchanges last month.
As a result, some investors may view the selling pressure as a buying opportunity, investment firm CoinShares said in a report on Monday.
“Digital asset investment products saw inflows totaling $441 million, with recent price weakness from Mt Gox and German government selling pressure likely seen as a buying opportunity,” CoinShares said. “However, exchange traded products (ETP) volumes remained relatively low at $7.9 billion for the week, reflecting the typical seasonal pattern of lower volumes in the summer months.”