Nearly 300,000 BTC has been scooped up by Bitcoin ETFs since January 😮

Bitcoin ETFs Surging with Inflows and Institutional Ownership

Regulated spot Bitcoin ETFs in the US are experiencing an uptick in inflows after a period of selling pressure that drove the leading cryptocurrency to a six-month low of $53,500 in recent days. The resurgence in interest in these ETFs points to a potential shift in sentiment towards Bitcoin among institutional investors in the market.

ETF Accumulation Trend Continues

Recent data from analytical sources SoSo Value and Ecoinmetrics reveals a consistent trend of accumulation of Bitcoin by ETFs in their portfolios, even amidst minor fluctuations in inflows during the month of June. Since the beginning of July, the inflows into these ETFs have picked up pace and exceeded the average levels seen in the previous months, indicating a renewed interest in Bitcoin among institutional players.

On July 31st, Bitcoin spot ETF witnessed a net inflow of $298 million.
Grayscale mini ETF BTC saw a net inflow of $17.99 million on the same day.
BlackRock ETF IBIT recorded an inflow of $20.99 million, further highlighting the growing interest in Bitcoin.

Data from Ecoinmetrics shows that since receiving approval from the US SEC in January 2023, Bitcoin ETFs have added close to 300,000 BTC to their collective holdings. Despite the slower pace of accumulation compared to earlier in the year, the consistent inflows demonstrate the sustained demand for the cryptocurrency among institutional investors.

In total, institutions now have control over nearly 9% of the total Bitcoin supply, with ETFs and similar products accounting for about 5.2% of this total. Public companies hold 1.6% of the supply, while private companies have a stake of at least 2% in the BTC market.

Bullish Sentiment Grows Amid Resistance Levels

Even though Bitcoin has faced challenges breaking above the $69,000 resistance level in the recent uptrend and seen a slight retracement of over 5% in the past 24 hours, overall sentiment surrounding the cryptocurrency is turning increasingly positive. Market intelligence platform Santiment reports a surge in bullish commentary on Bitcoin, reaching levels not seen since May, indicating growing optimism among traders.

Crypto analyst Ali Martinez notes that majority of top traders on Binance are buying the Bitcoin dip, with nearly 70% opting for long positions based on on-chain data.

Despite the positive sentiment, concerns arise about Bitcoin’s short-term price action, particularly if it fails to close the day above the $64,200 mark, which aligns with its 200-day EMA. Breaking this support level could lead to further price pressure on Bitcoin in the near term.

Historically, the 200-day EMA has been a crucial marker for Bitcoin’s price movements, acting as both a strong support level and a significant resistance point. As illustrated in the BTC/USDT daily chart, breaching this indicator could impact the cryptocurrency’s price dynamics moving forward.

Currently, Bitcoin is trading at $62,830, showing minimal gains in the last month and highlighting the need for sustained momentum to push the price higher in the days ahead.

Hot Take: Institutional Interest in Bitcoin Grows Through ETFs

The rise in inflows into Bitcoin ETFs and the increasing ownership of the cryptocurrency by institutional players indicate a broader acceptance and interest in Bitcoin as an asset class. With institutions now holding nearly 9% of the total Bitcoin supply, the market dynamics are evolving, signaling a new phase for Bitcoin adoption and investment.

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