Bitcoin ETFs Investors Enter Accumulation Phase, Daily Inflows Hit $295 Million

US Spot Bitcoin ETFs recorded the biggest day of inflows in over a month amid the broader crypto market struggles. The eleven US Spot Bitcoin ETFs garnered $295 million in inflow on July 8, marking the first day of positive net flow across all funds in three trading weeks.

BlackRock’s IBIT recorded the most inflows at $187.2 million, while Fidelity’s Wise Origin Bitcoin Fund gained $61.5 million. Grayscale’s GBTC also recorded a positive flow of $25.1 million for the first time after several consecutive days of outflow. 

Bitcoin ETFs Outlook Amid Bearish Market Trend

Farside Investment report shows the latest inflow is the biggest the ETFs ever recorded since June 5, when net inflows crossed $488 million.

According to Coinglass data, on July 3, only Fidelity’s FBTC recorded an inflow of $6.5 million. The rest saw zero inflows, except Grayscale’s GBTC, which saw $27 million in outflow.

On July 4, none of the 11 spot BTC ETFs recorded an inflow. Surprisingly, Grayscale’s Bitcoin Trust also saw no outflow. However, on July 5, the trend reversed towards the positive side, with a net inflow of $143.1 million, while GBTC recorded $28.6 million in the outflow.

The recent inflows come amid a broader market downtrend, with BTC price slipping off the $60,000 psychological level, dropping to a low of $53,600 on July 5. 

Many said the bearish market outlook stemmed from fears of sell pressure from Mt. Gox repayments. Moreover, the German government’s sales of over 26,200 BTC added to the bearish sentiment as it exerted selling pressure on Bitcoin. 

Digital Asset Investments Increase as Altcoins Also Attract Inflows  

Amid the market downturn, cryptocurrency investments have increased as investors seek to diversify their portfolios by taking advantage of lower prices.

A CoinShares report revealed $441 million in digital asset inflows on July 8, of which $398 million went into Bitcoin-related products.

The United States recorded the most inflows at $384 million, while Hong Kong followed with $32 million. Switzerland came third with $24 million in inflows, and Canada got $12 million. Conversely, Germany recorded $23 million in outflows due to its recent Bitcoin sales. 

The CoinShares report reveals that some investors are moving to altcoins as Bitcoin struggles. Amid this trend, Solana recorded $16 million in inflows within the past week, while Ethereum garnered $10 million. 

Solana’s inflows surged after investment firm Multicoin Capital pledged to double every SOL token contributed to the Sentinel Action Fund (SAF). 

Launched in 2022, SAF is a political fund that supports conservative candidates to ensure crypto can thrive in America. This fund accepts donations in several cryptocurrencies, including Solana, one of the assets in Multicoin’s portfolio.

Remarkably, $10.2 million from the SAF funds served to oppose five Democrats, while $3 million helped support 11 Republicans in the US. 

According to an Integrated Partner at Multicoin Capital, Kyle, the Sentinel Action Fund is vital to the US elections. Its goal is to elect crypto-friendly candidates for the US Senate, thus laying the framework for a pro-crypto Senate.

2/ Senator Hagerty is a champion of crypto innovation, and here’s what he says about Jessica and Sentinel’s work: “We can’t win without GOTV efforts, and Sentinel Action Fund is literally laying the groundwork for a pro-crypto Senate — they are on the ground in swing states to…

— Integrated Kyle e/acc (@KyleSamani) July 5, 2024

Multicoin will match all Solana donations from $1 to $1 million made for this cause within ten days from July 5. The Sentinel Fund contributed to inflows for Solana, exceeding Ethereum and other altcoins.

4/ Over the next 10 days, Multicoin Capital will match all SOL donations to @sentinelaction up to $1M in value. If you make a contribution in SOL during this period, we’ll double the impact of your contribution with our match. Contributions can be made starting today at…

— Integrated Kyle e/acc (@KyleSamani) July 5, 2024