$300M BTC Inflows Signal New Bull Run

Estimated read time 2 min read

While the market is in fear, BlackRock IBIT Bitcoin ETF alone added over 5,000 BTC in the past two days. This move capitalizes on the recent dip in BTC prices, highlighting robust investor interest. 

Is this the start of a new BTC bull run?

Massive Inflows and Price Recovery

Over the last two days, BlackRock’s IBIT has seen more than $300 million in inflows. On July 9, IBIT shares rose 2.49%, recovering from last month’s sell-off. In contrast, Grayscale’s GBTC experienced outflows of $37 million on the same day. Despite selling pressure from sources like Mt. Gox repayments and a German government entity, institutional investors see this as a buying opportunity. However, July has a median return of 9% for the crypto market, with traders expecting this bullish trend to continue.

Meanwhile, US spot Bitcoin ETFs recorded significant inflows, totaling $214 million, with BlackRock’s IBIT leading the way. BlackRock’s IBIT registered $121 million in inflows, adding 2134 BTC that day alone. The day before, it saw $187 million in inflows, acquiring over 3,300 BTC as prices dropped to $53,500. Overall, this marks the highest three-week inflow for US BTC ETFs. Fidelity’s FBTC followed closely with $90.95 million in net inflows, while Grayscale’s GBTC saw outflows of $37.5 million.

Despite a 10.92% correction in the previous week, Bitcoin rebounded with a 5.91% jump over three days, currently trading at $59,195. The cumulative net inflow for Bitcoin ETFs is $15.27 billion, representing 4.45% of Bitcoin’s market cap. This suggests renewed investor confidence and hints at the possibility of a bull run for Bitcoin.

Market Reactions

Following the recent BTC price drop to a four-month low, Bitcoin ETF shares have been recovering, gaining 2-5% in the past two days. On Tuesday, IBIT shares surged 2.49%, reaching 32.96. Despite trading at a 17% discount for the month, IBIT shares have achieved a 23.77% gain year-to-date. Other spot BTC ETFs in the US have shown similar recovery patterns in share prices. The cumulative net inflow for Bitcoin has reached $15 billion, indicating robust institutional interest and potential support for Bitcoin’s value amidst market volatility.

What do you think is driving the recent surge in net inflows to Bitcoin ETFs, especially with BlackRock’s IBIT leading the pack with $300 million?

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