Bitcoin ETFs Surge: $654 Million Inflows in 3 Days, But Will It Push Bitcoin Past $60,000?
Cointelegraph3 months ago
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Bitcoin ETFs Surge: $654 Million Inflows in 3 Days, But Will It Push Bitcoin Past $60,000?

Market Sentiment
Bitcoin
ETF
MarketSentiment
BlackRock
Germany
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Summary:

  • Bitcoin ETFs attracted $654 million in net inflows over the past three trading days, starting July 5th.

  • BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund led the charge with significant inflows.

  • Analysts believe ETFs played a crucial role in Bitcoin's price surge from $16,000 to $73,000.

  • Despite ETF inflows, Bitcoin has struggled to regain $60,000.

  • Germany's Bundeskriminalamt (BKA) has been selling off nearly 50,000 Bitcoin seized in January, potentially offsetting the bullish impact of ETF inflows.

Bitcoin ETFs See Massive Inflows, But Can They Boost Price?

Bitcoin exchange-traded funds (ETFs) have been attracting significant investment, with $654 million in net inflows over the past three trading days, starting July 5th. BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund led the charge, bringing in $121 million and $91 million, respectively, on July 9th alone.

This surge in ETF investment follows a strong performance in the months leading up to March when Bitcoin reached an all-time high. Sina G, co-founder of 21st Capital, believes ETFs played a significant role in that price rally, stating, "The run-up from $16K to $73K was largely driven by the ETFs, following a buy-the-rumor buy-the-news phenomenon."

However, despite these hefty inflows, Bitcoin has struggled to reclaim the $60,000 mark since July 4th, trading at $59,165 at the time of writing. Some analysts remain optimistic, hoping the ETFs will provide the much-needed push to drive prices higher.

German Authorities Sell Off Bitcoin Seizures, Counteracting ETF Inflows

While ETFs are attracting investment, Germany's Bundeskriminalamt (BKA) has been selling off nearly 50,000 Bitcoin seized in January during a probe into a movie pirating website. Since July 5th, the BKA's wallet has reduced its BTC holdings by over $850 million, with hundreds of millions transferred to exchanges and market makers.

This selling pressure from the BKA could be offsetting the positive impact of ETF inflows on Bitcoin's price. It remains to be seen whether the bullish sentiment fueled by ETF investment will ultimately prevail over the selling pressure from the German authorities.

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