In 2021, regulated spot Bitcoin ETFs in the United States have been accumulating a significant amount of BTC, despite recent selling pressure that caused the price of Bitcoin to drop to a 6-month low of $53,500 on July 5th. Data from analytics providers SoSo Value and Ecoinmetrics indicate that Bitcoin ETFs have continued to accumulate BTC in their holdings, with inflows picking up pace since the beginning of July.
On July 31st, the Bitcoin spot ETF saw a net inflow of $298 million, while the Grayscale mini ETF BTC and the BlackRock ETF IBIT also recorded substantial inflows. Since their approval by the US Securities and Exchange Commission (SEC) in January 2023, Bitcoin ETFs have added nearly 300,000 BTC to their holdings. Institutions now control approximately 9% of the total Bitcoin supply, with ETFs and ETF-like products holding around 5.2% of the total supply.
Despite Bitcoin’s recent struggles to surpass the $69,000 resistance level and a minor retrace in the past 24 hours, sentiment towards the leading cryptocurrency remains largely bullish. Market intelligence platform Santiment reported that bullish commentary on Bitcoin has reached its highest level since May, indicating optimism among investors.
Crypto analyst Ali Martinez noted that top traders on the Binance exchange are currently buying the Bitcoin dip, with a majority of them taking long positions on BTC. However, concerns remain about Bitcoin’s short-term price action, particularly if it fails to close above the $64,200 mark, which corresponds to its 200-day exponential moving average (EMA).
The 200-day EMA has historically acted as a strong support level for Bitcoin, but a break below this indicator could signal further downside potential. At the time of writing, Bitcoin was trading at $62,830, up just 1.6% in the 30-day timeframe. Despite the recent price fluctuations, institutional demand for Bitcoin remains strong, with ETFs continuing to accumulate BTC.
In conclusion, the growing institutional interest in Bitcoin ETFs and the consistent accumulation of BTC by these funds reflect a long-term bullish outlook on the leading cryptocurrency. While short-term price volatility may persist, the overall sentiment among investors remains positive, emphasizing the potential for Bitcoin to reach new milestones in the future. Investors are advised to conduct their own research before making any investment decisions in the crypto space, as investing always carries inherent risks.