Following the July 4 break, U.S. traders were met with a significant drop in bitcoin (BTC) prices as it fell over 10% from its pre-holiday levels. Despite this, investors in Bitcoin ETFs showed confidence by increasing their investments. Data from Farside Investors revealed that U.S.-based spot bitcoin ETFs experienced a net inflow of $143.1 million on Friday, marking the highest level of inflows in at least two weeks.
Among the ETFs, Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the way with $117.4 million in net new money. Other funds that saw net inflows included the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL). On the other hand, the Grayscale Bitcoin Trust (GBTC) continued to see outflows due to its high fees.
In terms of price action, bitcoin has slightly recovered from its drop, currently trading at around $56,800 after falling from nearly $61,000 on Wednesday to under $54,000 early Friday. This marks a 6% decrease from the previous week and a 23% drop from its all-time high of over $73,500 in mid-March.
The recent decline in bitcoin prices has been attributed to concerns about a potential increase in supply. Trustees for the now-defunct exchange Mt. Gox started returning 140,000 bitcoins to former customers, while the German government reportedly planned to sell some of the thousands of bitcoins it holds.
It’s important to note that CoinDesk, the source of this information, is a reputable media outlet that covers the cryptocurrency industry. The publication follows strict editorial policies and was acquired by the Bullish group in November 2023. The Bullish group, majority-owned by Block.one, operates a regulated digital assets exchange and has interests in various blockchain and digital asset businesses. CoinDesk remains an independent subsidiary with an editorial committee to maintain journalistic independence, and its employees, including journalists, may receive options in the Bullish group as part of their compensation.