Bitcoin ETF Inflows Surge

Spot bitcoin (BTC) exchange-traded funds (ETFs) experienced a significant increase in net inflows, totaling nearly $300 million on Monday. This surge in buying activity is the highest since early June when the cryptocurrency was trading over $70,000.

SoSoValue data reveals that BlackRock’s IBIT led the buying activity with close to $180 million in net inflows, followed by Fidelity’s FBTC. Surprisingly, Grayscale’s GBTC, known for its outflows, recorded over $25 million in purchases. On the other hand, ETFs offered by Invesco, Franklin Templeton, Valkyrie, WisdomTree, and Hashdex did not show any inflow or outflow activity.

The strong inflows come at a time when bitcoin is facing significant selling pressure from various sources, including repayments linked to the defunct crypto exchange Mt. Gox and a German government entity moving hundreds of millions worth of BTC to exchanges in the past month.

According to a report by investment firm CoinShares, some investors are viewing this selling pressure as a buying opportunity. CoinShares stated, “Digital asset investment products saw inflows totaling US$441m, with recent price weakness prompted by Mt Gox and the German Government selling pressure likely being seen as a buying opportunity.”

Despite the selling pressure, traders are optimistic about July being a generally bullish month for the crypto market. Historically, July has seen a medium return of 9%, and this trend is expected to continue.