Renewed Interest: Bitcoin ETFs See Major Purchases, Market Confidence Rebounds?
After experiencing significant selling pressure over the past two months, U.S. regulated Bitcoin spot ETFs are witnessing a resurgence in fund inflows. This influx has led the largest cryptocurrency to rebound after hitting a six-month low of $53,500 on July 5.
According to analysis from SoSo Value and Ecoinmetrics, despite a brief dip in early June, Bitcoin ETFs have been consistently accumulating BTC. Since July 1, inflows have accelerated, surpassing the average levels of the previous two months.
On July 31, Bitcoin spot ETFs saw a net inflow of $298 million, with Grayscale mini ETF BTC bringing in $17.99 million and BlackRock ETF IBIT receiving $20.99 million.
Data from Ecoinmetrics indicates that since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin ETFs in January 2023, holdings have increased by nearly 300,000 BTC. Although the accumulation pace has slowed compared to earlier this year, the ongoing inflows during stagnant price periods demonstrate sustained institutional demand for the leading cryptocurrency.
Currently, institutional investors control nearly 9% of the Bitcoin supply, with ETFs and similar products accounting for approximately 5.2%. Publicly traded companies hold another 1.6%, while private firms possess at least 2% of the BTC supply.
Despite Bitcoin’s inability to break the $69,000 resistance in its latest uptrend and a pullback of over 5% in the past 24 hours, overall sentiment towards the leading cryptocurrency appears increasingly bullish.
Market intelligence platform Santiment reports that bullish commentary on Bitcoin has reached its highest level since the week of May 15. This suggests that many cryptocurrency enthusiasts believe Bitcoin will soon hit the $70,000 milestone.
Crypto analyst Ali Martinez supports this view, noting that on-chain data shows top traders on Binance are currently buying Bitcoin, with nearly 70% going long on BTC.
However, short-term price movements remain concerning. If Bitcoin fails to close above $64,200 (its 200-day exponential moving average), it could spell trouble for the asset’s short-term price trajectory.
